Indonesia’s Economic Growth Slows to 5%, Matching Forecasts
- Consumer spending remains strong, government outlays falling
- Bank Indonesia unlikely to ease policy rest of year, ANZ says
Indonesia’s economy grew in line with economists’ forecasts in the third quarter as President Joko Widodo seeks to spur the nation onto a higher growth path.
Southeast Asia’s biggest economy has been undershooting the 7 percent growth target set by Widodo when he took office two years ago, mainly due to low commodity prices and weaker global demand. Jokowi, as the president is known, is seeking billions of dollars to help fund an ambitious infrastructure agenda that includes building roads, railways and seaports. He said last week the government has now set its sights on growth of more than 6 percent in 2018 and a 10 percent boost in investment. Also helping to support the growth outlook are six interest rate cuts by Bank Indonesia this year to spur spending as inflation remains inside the 3 percent to 5 percent target band.