World bank estimates Indonesian economy to expand 5.3 this year

JAKARTA, March 27 (Xinhua) -- Indonesia's economy will grow 5.3 percent this year supported by export and consumption, World Bank said here on Tuesday.

Country Director World Bank for Indonesia Rodrigo A. Chaves said Indonesia's economy expanded significantly in the second half of last year.

"We projected that the significant growth will continue this year, and the growth target (of 5.3 percent) will be achieved," he said at the Indonesian economic quarterly forum.

However, the director warned that the growth forecast faces risks if global trade weakens along with a weakened growth of domestic private consumption, which account for over half of the country's gross domestic product growth.

Besides, rising domestic demand on imported products would also erode the contribution of exports to the economic growth amid a weakening rupiah, he added.

The Indonesian central bank has kept a neutral policy by holding its benchmark interest rate steady at 4.75 percent since September of last year. Enditem