JAKARTA (Reuters) – Indonesia’s economy is expected to grow by between 5.2 and 5.6 percent next year, the central bank governor said on Monday.

Agus Martowardojo told a parliamentary hearing that government spending on infrastructure is expected to drive higher growth in Southeast Asia’s biggest economy.

“The prospect of improvement in the economy in 2017 will be supported by investment growth…and fiscal stimulus especially in infrastructure projects and the government’s economic policy packages,” he said.

A worker holds steel bars as he walks at the construction site of a new apartment in Jakarta, Indonesia. REUTERS/Beawiharta

Martowardojo added that annual inflation next year is estimated at 4 percent in anticipation of rising food commodity prices.

He added the rupiah is expected to trade in the range of 13,600 and 13,900 against the U.S. dollar next year.

(Reporting by Hidayat Setiaji; Writing by Kanupriya Kapoor; Editing by Kim Coghill)

Leave a comment

Your email address will not be published.