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Indonesia's GDP forecast below 5 pct in Q1: finance minister

Xinhua, April 30, 2015 Adjust font size:

Indonesia's economy is projected to grow at slower pace at the first quarter as the weakening global economy saps demand of Indonesia's export products, but the government expects the economy to expand faster at the second quarter as more development budget will be spent.

Finance Minister Bambang Brodjonegoro disclosed on Thursday that he estimated the country's economy to grow by less than 5 percent at the first three months, falling from 5.01 percent at the previous quarter.

Brodjonegoro said that the weakening growth in Asia, the main export market for products of Indonesia's big companies, has weakened demand on products manufactured by big firms in the biggest economy in the Southeast Asia that impacted on the corporate performance.

"May be a little bit below 5 percent," he said when asked his forecast on the growth at the three months ended in March at the finance ministry. China, Japan and South Korea are among the main export destination country of Indonesia's products.

Indonesia is the world's top exporter of palm oil, thermal coal and refined tin. The country is also among the world's top exporter of cocoa and rubber, and the world's top producer of copper.

"We have checked the data on the first quarter in the big economies. All are below prediction," said Brodjonegoro.

The minister said that falling global oil prices also factors on the slowing of the economic growth. The weak performance of the corporate has in part led the composite index at the Indonesian stock exchange tumble to 4.3 percent before paring losses at 2.6 percent at close on Wednesday.

Indonesian President Joko Widodo has admitted that the country' s economic growth had been slow in January and February, but saying that the growth has started accelerating faster at mid of April.

President Widodo cited that the distribution of state budget funds would commence in April and be more in May. Endi