Posted on 19 May 2010
Finance Minister Sri Mulyani Indrawati said the country`s economy has the potential to grow six percent in the second quarter and thereby help the fulfilment of this year`s growth target of 5.8 percent.
"There is still a possibility growth in the second quarter of this year will reach 6.0 percent," she said at the office of the coordinating minister for the economy here on Monday.
She said supporting factors such as government spending, public consumption and exports were quite strong and would boost growth in the second quarter after the first quarter growth had reached 5.7 percent.
"The pontential is still quite strong in terms of government spending, consumption and exports. They all show potentials for the next three months," she said.
Mulyani said the second quarter growth would also be supported by raw material and capital good imports which were among the most important indicators of faster econmic growth.
She however also cautioned that there was potential for an increase in inflation in the middle of the year but in view of the current conditions it seemed the weather would likely help stabilize prices.
"We probably have to be alert (towards a possible inflation hike) in the middle of the year but it seems the rainy season this year is quite good so I think the price of food is likely to remain stable," she said.
The head of fiscal policy, Anggito Abimanyu, meanwhile said earlier that based on the current trend of growth it was very likely that growth in the second quarter would be higher than in the first quarter.
"Usually seeing past cycles, Q2 growth will be higher than growth in Q1 and growth in Q3 will be higher than in Q2 and in Q4 lower than in Q3 so that a 5.7-percent economic growth is still within the range of our predictions of 5.8 percent," he said.
Coordinating Minister for Economic Affairs Hatta Rajasa meanwhile also expressed optimism that economic growth could still reach six percent in the second quarter.
"We are optimistic second quarter growth will reach 6.0 percent. People even predict our economy may grow to above 6.0 percent meaning a 5.8 to 6.0 percent growth is likely to be achieved," he said.
