The World Bank (WB) estimated that Indonesia's
economic growth to reach 4.3 percent this year, or higher than the WB's initial estimation that stood at 3.5 percent, a WB senior economist said here on Wednesday.
The WB's latest estimation was slightly lower than the government's target initially set at
4.5 percent.
"Indonesia has demonstrated tremendous dynamic economy in the last three months. The
economic growth would reach 4.3 percent by the end of the year," WB Economist William E.Wallace was quoted by the Detik.com as saying.
William said that Indonesia's economic growth is strongly spurred by domestic demands with recovery of external sector at the same time.
"Fiscal stimulus in the second half and rapid private sector spending growth by 4.5 percent in the first half greatly contribute to the national growth increase this year," William said.
William predicted that the government's spending would be increasing following the fund
disbursement of the fiscal stimulus.
William, however, said that due to the minimum loan growth, Indonesia would see slow investment growth by the end of this year. The loan growth this year was the lowest in the last three years, he added.
Furthermore, William predicted that Indonesia's economic growth would continue to increase up to 5.4 percent and 6.5 percent in 2010 and 2011 respectively.
The improving domestic consumption, increasing export and the investment recovery in 2010 would boost the country's growth in the following years, William said.