Houshold Consumption will Bring 5% Economy Growth in Quarter IV

Head of sales distributuion of PT ashmore asset management indonesia, steven s yudha said in market update held by commonwealth bank on thursday  sept 15,2016: the low inflation this year will trigger the private consumption. Besudes the government expenditure is also decisive in boosting the growth at rate 5% ib fourth quarter.

The growth of economy in fourth quarter is assumed to be realistic and feasible. Government has distributed the insentive to lower classes such as kartu pintar, voucher , kartu indonesia sehat that will trigger the private consumption.

Meanwhile governor of bank of indonesia agus martowardojo predicted that the projection of economy growth this year will be 5.04%. In the third quarter it is projected 5.41% meanwhile in the fourth quarter is 4.92%.

Tax amnesty that is transpiring seemingly will be perceived in 2017. The participants of tax amnesty is still not significantly raising and still far from expected target. On the other hand government already cut the budget for unnecessary spendings. This will imply impact to the hard effort reaching the target of economy growth 5.3% this year. The most logical achievement will be at rate 5.02%. Though in the second quarter and third quarter, the economy growth leap significantly but the accumulative for year on year will be determined by the realization in the fourth quarter.