Senior Minister Projects Economic Growth at 5.1 Percent

Jakarta, (Antara Sumbar) - Coordinating Minister for Economic Affairs Darmin Nasution has projected that economic growth in 2017 can reach 5.1 percent, although until the end of the third quarter, the economy grew 5.03 percent.

"It is unrealistic if growth is predicted at a somewhat high level. Probably, the highest is at around 5.1 percent," Nasution stated in Jakarta on Thursday.

Nasution noted that economic conditions until the end of the year could be supported by a growth in investment and exports that increased in third quarter of 2017, although household consumption did not grow as well as that in the previous period.

"There is a weakening, but on the other hand, there are improvements. However, investment growth is relatively good, with monthly exports improving, though the year-on-year (figure) has not improved," he said.

Speaking in connection with government consumption, Nasution admitted that the expenditure component has not been able to contribute optimally to the economic growth, as there is currently a slowdown in the realization of expenditure.

"Actually, since the second quarter, the state budget's contribution to growth has not been optimal," he explained.

Nevertheless, he expects government spending to start increasing in the fourth quarter of 2017 and will be able to contribute to household consumption and to the overall economic growth.

"If the state budget improves in the fourth quarter, there will surely be an increase, but growth is not as big as planned," he emphasized.

Earlier, the Central Bureau of Statistics had recorded that economic growth in the third quarter of 2017 had reached 5.06 percent, supported by export growth at 17.27 percent and gross fixed capital formation at 7.11 percent.

In addition, economic growth during this period was contributed by consumption of non-profit institutions serving households that grew by 6.01 percent, household consumption that rose by 4.93 percent, and government consumption that increased by 3.46 percent.

The biggest contributor to the country's gross domestic product was household consumption, reaching 55.68 percent in the third quarter of 2017; however, its low growth has become the government's main focus. (*)

Editor: Vicha Faradika