Indonesia's Economic Growth Predicted to Reach 5 Percent in Q1

Jakarta, March 1 (Antara) - The National Development Planning Board (Bappenas) predicted Indonesia's economic growth would reach 5 percent in the first quarter of this year. Financial and Monetary Analysis Director of the agency Sidqy L.P Suyitno said infrastructure projects implemented in the first quarter of this year could serve to jack up economic growth during that period. Barring unexpected stumbling block, the growth should be faster especially as construction of projects of the Public Works and Housing Ministry and the Transport Ministry is already underway since January, Sidqy said here on Tuesday. He said in the last quarter of 2015, economic growth was higher than expected by many at 5.04 percent (yoy), exceeding previous quarter record of 4.73 percent (yoy). The growth in the first three months of the year is also predicted to exceed growth level of 4.67 percent (yoy)in the same period last year. Increases recorded in the car, motorcycle and cement sales are also indicators that the economy would grow faster, he said. "Normally if (automotive and cement sales) increased, the economic growth would be healthy, especially if the state budget approval is smooth," he said. Altogether, the government's infrastructure spending of Rp313 trillion in the 2016 state budget would contribute 1.8 percentage points to the economic growth this year, he said. "The higher the spending and the more equitable in four quarters, the stronger would be the driving force," he said. The government sets economic growth target at 5.3 percent this year higher than the growth of 4.79 percent in 2015. ***3***