The Bank of Indonesia predicted the country’s economy would grow 5.9 percent to 6.1 percent in the second quarter (Q2) of this year, depending on the government policy in oil fuel subsidy.

The Government is expected to raise the prices of subsidised oil fuels next month to curb swelling subsidies, Antara news agency quoted Deputy Governor of the central bank Perry Warjiyo as saying on May 31.

Perry added that the central bank predicted the country’s economy would grow 6.3 percent this year driven by Idul Fitri festivities and pre-election campaigns.

In the first quarter, the Indonesian economy grew 6.02 percent slowing than a growth of 6.11 percent in the previous quarter.

According to Antara, the slowdown was attributed to shrinking domestic demand. The consumption sector has been the biggest driver for the country’s economic growth in the past several years.-VNA