Bank Indonesia (BI) has lowered its prediction of the country’s economicgrowth in 2014, from its initial 5.5-5.9 percent to 5.1-5.5 percent, asits goods and service exports have dropped.
Speaking at apress conference in Jakarta after the bank’s meeting on May 8, IBGovernor Agus Martowardojo said the poor export performance was behindthe revision to the growth forecast.
He noted that the bankhad initially predicted that real exports will grow 8.1- 8.5 percent,but in reality the growth of real exports in the first quarter of thisyear was up to 1.9 percent lower.
Indonesia's economy in thefirst quarter slowed due to contraction of real exports. The country'seconomy subsequently grew only 5.21 percent in the first quarter of thisyear.
The reason given for this was a decline in miningexports, such as coal and mineral concentrate, due to weak demand,especially from China, falling prices and the temporary impact of theban on raw mineral exports, Agus said.
Indonesia’s foreigncurrency reserves in April increased by 3 billion USD to 105.6 billionUSD. It is enough to cover its demand of importing and paying debtswithin 5.9 months.
Deputy Governor of the central bank PerryWarjio said it also decided to maintain its interest rate at 7.5 percentto ensure a balance between the country’s two goals of promotingeconomic growth and curbing inflation.-VNA
Speaking at apress conference in Jakarta after the bank’s meeting on May 8, IBGovernor Agus Martowardojo said the poor export performance was behindthe revision to the growth forecast.
He noted that the bankhad initially predicted that real exports will grow 8.1- 8.5 percent,but in reality the growth of real exports in the first quarter of thisyear was up to 1.9 percent lower.
Indonesia's economy in thefirst quarter slowed due to contraction of real exports. The country'seconomy subsequently grew only 5.21 percent in the first quarter of thisyear.
The reason given for this was a decline in miningexports, such as coal and mineral concentrate, due to weak demand,especially from China, falling prices and the temporary impact of theban on raw mineral exports, Agus said.
Indonesia’s foreigncurrency reserves in April increased by 3 billion USD to 105.6 billionUSD. It is enough to cover its demand of importing and paying debtswithin 5.9 months.
Deputy Governor of the central bank PerryWarjio said it also decided to maintain its interest rate at 7.5 percentto ensure a balance between the country’s two goals of promotingeconomic growth and curbing inflation.-VNA
