Economic growth picked up in the third quarter of 2015 and was projected to continue improving through the fourth quarter. The economy posted growth of 4.73 per cent (year-on-year) in Q3/2015, outpacing the 4.67 per cent (yoy) achieved in the previous period, in line with various indicators monitored by Bank Indonesia over the past few months. Such conditions pave the way for stronger economic momentum moving forward, bank Indonesia said in a press release. Significant progress was made in terms of government-led infrastructure projects despite the wait-and-watch attitude of private investors. Households, however, continued to consume tenaciously. From an external perspective, persistently low international commodity prices, coupled with sluggish growth in trading partner countries, such as US, China and Singapore, precipitated a deeper export contraction. On the other hand, import growth was maintained on the back of stronger domestic demand. Bank Indonesia is satisfied that the current economic momentum will gain further traction in the fourth quarter as the government continues to expedite infrastructure projects that will attract more investment. Private investment was also predicted to increase in line with the policy packages released by the government, including deregulation to bolster the investment climate. Meanwhile, consumption was expected to surge as a result of local elections to be held nationwide in December 2015. In addition, a looser macroprudential policy stance will also begin to catalyse economic activity in the final quarter of this year, the release said. Bank Indonesia said it will continue to monitor various domestic and international developments, while simultaneously coordinating with the Government to stimulate economic growth and maintain macroeconomic stability. By maintaining macroeconomic stability, the economy of Indonesia will growth sustainably at a faster rate.
