Aditya Suharmoko, Jakarta – The economy grew by 6.28 percent in the first quarter of 2008 from the same period last year on robust growth in investment, exports and spending, the Central Statistics Agency (BPS) said Thursday.

Slamet Sutomo, BPS deputy chairman, said year-on-year private spending increased by 5.5 percent, government spending increased by 3.6 percent, investment increased by 13.3 percent and exports by 15 percent.

By value, private spending increased from Rp 682 trillion to Rp 702.7 trillion, investment from Rp 275.3 trillion to Rp 285.6 trillion and exports from Rp 317.3 trillion to Rp 344.5 trillion.

About 58.1 percent of the GDP came from Java, with 23.8 percent from Sumatra, 9.8 percent from Kalimantan and 3.9 percent from Sulawesi.

The government is eyeing an economic growth target of 6.4 percent this year, although Finance Minister Sri Mulyani Indrawati said it may only reach 6 percent because of the impact of planned fuel price rises.

This rise is expected to push up inflation and the central bank's benchmark interest rate, discouraging bank lending demand and slowing economic growth.

By sector, the transportation and communications sector increased by 19.7 percent from a year earlier. The agricultural sector increased by 18 percent, helped in part by a successful harvest season. "Rice production increased by 1.22 million tons this quarter," Slamet said.

Significant growth also occurred in the electricity, gas and water sector, the financial, real estate and company services sector, the construction sector and the trade, hotel and restaurant sector.

"It shows Indonesia has yet to be affected by the US recession," said Anggito Abimanyu, the Finance Ministry's head of fiscal policy, in response to the BPS report.

According to the ministry, expenditure accounts for about 60 percent of the economy, with investment and exports accounting for another 20 percent each.

However, the business confidence index dropped to 104.41 from 112.25 in the last quarter of 2007. The BPS predicted the index would rise to 108.61 in the second quarter of 2008 with rising overseas demand. The index reflects the business sector's confidence in the country's economy.