Indonesia’s economy grows beyond expectation in Q2
Indonesia’s second-quarter economic growth has surpassed expectation as spending surged, particularly during Ramadan holiday, said the country’s statistics bureau.
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In a related development, Minister of Finance Sri Mulyani Indrawati revealed that the country will cut down government spending by 133 trillion rupiah (US$10.1 billion) due to the world’s unfavorable economic impacts, goods prices, and low demand as well as anticipated insufficient source of revenue.
Although the government is resolved to implement the belt-tightening policy to maintain budget deficit at an acceptable limit of under 3 percent of gross domestic product (GDP) but strategic infrastructure projects will be still prioritized, the minister said, adding that the current budget deficit of Indonesia is at 2.35% of GDP.
According to the statistics bureau’s data, Indonesia’s exports have experienced the 21st straight month of fall as a downward trend has been seen in the country’s key export markets, especially China which consumed 25% of Indonesia’s total coal exports.
Indonesia’s Ministry of Finance said tax collection for 2016 is expected to fall short of target by 219 trillion rupiah (US$22.5 billion) or 21% of the target of 1.34 quadrillion rupiah (US$101 billion).
