Indonesian central bank expects economy to expand 5 to 5.4 pct this year

Indonesia's central bank forecasts the country's economy to accelerate at a faster pace this year as the rebound of global commodity prices have spurred exports amid expectation of a huge asset repatriation.

Spokesman of Bank Indonesia Tirta Sagara announced on Tuesday that the lender estimates this year's economic growth at 5 to 5.4 percent compared with 4.79 percent last year.

Last month, Indonesia passed the tax amnesty law which has spurred capital inflows and bolstered stock market amid the hope that it will spur a massive influx of repatriated assets.

That is expected to help financing President Joko Widodo's massive infrastructure projects as he aims to create more jobs and smooth flows of goods, and pursue over 7 percent GDP growth at the end of 2019.

Indonesia is the world's largest exporter of palm oil, thermal coal, and the world's third biggest exporter of rubber and cocoa, as well as home to the world's second-biggest copper mine.

In June, Indonesia posted a widened trade surplus of 900.2 million U.S. dollars compared with 375.6 million U.S. dollars in May, the national statistic bureau has reported.

The central bank, which has previously aimed at implementing easing policy this year, must also maintain rupiah at the range of its expectation amid a prospect of huge asset repatriation. Enditem