HATTA OPTIMISTIC Q3 ECONOMIC GROWTH TO EXCEED SIX PCT

Jakarta, Sept 6 (ANTARA) - Economic Affairs Coordinating Minister Hatta Radjasa said he was optimistic economic growth in the third quarter of 2010 would exceed six percent after it had reached 6.2 percent in the second quarter.

"As for economic growth in the third quarter , I think, it can reach more than six percent as in the second quarter it was already about 6.2 percent," Hatta said at his office here Monday.

He said a factor stimulating economic growth in the third quarter was the government's expenditures which were higher than in the second quarter while investment had increased and people's expenses had remained stable.

"It is from this perspective that we are able to predict economic growth in the third quarter of 2010," he said.

Hatta said the people's purchasing power had remained stable. This was evident from the fact that the inflation rate had dropped in August 2010 compared to July 2010. He hoped that after Lebaran, the prices of various commodities, especially food, would decrease so that inflation would not increase.

"I do hope that after the Lebaran, the prices commodities, especially of food, will decrease even though there are signs of rising food prices in the world," he said.

Previously, the Central Statistics Bureau (BPS) had reported e economic growth in the first semester of 2010 reached 5.9 percent or up ftom the first semester in 2009. The growth was fully supported by household consumption that reached 4.5 percent, investment 8.0 percent, exports and imports 17.2 and 20.1 percent respectively while government spendings reached 8.9 percent.

Indonesia's economic growth based on gross domestic product (GDP) in the quarter of 2010 was up 2.8 percent compared to the first quarter while compared to the same period in 2009, it was up 6.2 percent.

The GDP growth reached 2.8 percent supported by household consumption expenditure which increased 1.2 percent while consumption expenditure increased about 23.5 percent, investment 2.3 percent, export goods and services 2.7 percent and import goods and services 5.1 percent.

Compared to the second quarter in 2009, economic growth was 6.2 percent supported by household consumption expenditure which increased 5.0 percent, investment 8.0 percent, export goods and services 17.7 percent while the government consumption expenditure decreased 9.0 percent.

The highest growth in the second quarter happened in the transportation and communication sector 12.9 percent, trade, hotel and restaurant sector 9.6 percent and construction sector 7.2 percent.

The GDP structure in the second quarter in 2010 continued to be dominated by the manufacturing sector, the trade and agricultural sectors contributed 24.0 percent,15.9 percent and 13.7 percent respectively.