The central bank (Bank Indonesia/BI) predicts the 2017 national economic growth to stay within the 5.0-5.4% range. But several risks on the economic growth prospect still demand vigilance, especially related to slow domestic demand along with the ongoing consolidation in the corporate and banking sectors. BI said Indonesia’s economic recovery process continue over the second quarter of 2017 albeit not as strong as previously projected. Consumption growth is potentially lower, as reflected by slower retail sales. Exports continued to grow, albeit below the previous projection due to slower growth of export volume for primary and manufacturing goods. In contrast, investment performance improves, especially in the nonbuilding sector related to natural resources, while building investment remains solid supported by government infrastructure projects but also by the private property sector.
