Jakarta: Bank Mandiri chief economist Andry Asmoro is confident that Indonesia's gross domestic product (GDP) growth could reach 5.22 percent in the end of 2019.
"We think that foreign direct investment (FDI) will continue to grow in the second semester," the economist said here on Wednesday.
"We expect that annual inflation will reach 3.14 percent in the end of the year," the economist added.
Solid national economic growth was recorded at 5.07 percent (yoy) in the first quarter of 2019, pointing to maintained domestic economic performance despite retreating from 5.18 percent (yoy) in the fourth quarter of 2018.
Seasonal factors at the beginning of the year as well as the impact of weaker-than-expected global economic gains contributed to the moderate economic downturn in Indonesia.
Economic growth in the first quarter of 2019 was primarily driven by domestic demand on the back of consumption by non-profit institutions serving households (NPISH) and households.
NPISH consumption growth accelerated to 16.93 percent (yoy) in the reporting period from 10.79 percent (yoy) in the three months to December 2018, buoyed by spending on preparations for the 2019 General Election.
Household consumption also remained solid as a consequence of controlled inflation, rising incomes and higher consumer confidence, notwithstanding slight moderation from 5.08 percent (yoy) to 5.01 percent (yoy) in the first quarter of 2019.
In the meantime, the Consumer Price Index (CPI), as a measure of headline inflation, was recorded at 0.44 percent (mtm) in April 2019, increasing from 0.11 percent (mtm) the month earlier.
Inflation in April stemmed primarily from pressures on volatile foods (VF) and administered prices (AP), while core inflation remained relatively stable.
Annually, therefore, CPI inflation stood at 2.83 percent (yoy) in the reporting period, up from 2.48 percent (yoy) the month earlier.