Bank Indonesia (BI) Governor Perry Warjoyo announced on Tuesday the revision of its gross domestic product (GDP) projection for 2019 to between 5 and 5.4 percent from its initial projection of between 5.1 and 5.5 percent.
The new midpoint projection is 5.2 percent.
“Economic growth will be supported by strong domestic spending and investment,” Perry said in his speech at BI’s annual meeting in Jakarta.
The projection considered the government’s efforts to control imports and boost exports as well as increase tourist arrivals.
Meanwhile, inflation is estimated at 3.5 percent in 2019 on account of controllable market demand, volatile food and administered prices and the stable exchange rate of the rupiah.
The current account deficit was projected to decline to 2.5 percent of GDP from the current position of above 3 percent.
Credit growth is estimated at between 10 and 12 percent, while financing through third-party funds was expected to grow between 8 and 10 percent. (bbn)