BI: RI's Growth To reach 6.3 Pct End Of 2012

Jakarta, Nov 8 (ANTARA) - Bank Indonesia (BI) believes the domestic economy will expand 6.3 percent until the end of this year on strong domestic demand. "Consumption and private investment will remain strong so the economy will grow 6.3 percent," the executive director of the central bank`s economic research and monetary policy department, Perry Warjiyo, said here on Wednesday. The government`s consumption in the fourth quarter is expected to increase compared with the previous quarters so that the government`s spending will go up accordingly, he said. "Normally, the government`s spending in the fourth quarter increases so we remain optimistic the economy will expand 6.3 percent for the fourth-quarter of 2012," he said. Although the economic growth is likely to fall short of the central bank`s forecast of 6.4 percent, all sectors will perform well this year, he said. Among the sectors which will expand are the manufacturing, trade, and transportation and communication sectors, he said. Investment inflows will remain strong, fueled by business players` optimism about the country`s conducive investment climate and good prospect of the domestic economy, he said. As such, the domestic economy will expand 6.3 percent this year. "Overall, the economic growth will slightly be lower than projected but we believe it will reach at least 6.2 percent to 6.25 percent," he said. The domestic economy grew 6.17 percent in the third quarter of 2012, lower than the government`s forecast of 6.32 percent, according to the central bank. The third-quarter growth of 6.17 percent suggested a decline in the real sector, Perry said.