Jakarta – Bank Indonesia (BI) has predicted the country's economy will grow by 5.2 percent in the third quarter of 2016 as government spending is projected to increase.

"We forecast Indonesia's economic growth in the third quarter will stand at 5.2 percent, so economic growth will be 5.09 percent for the year," BI governor Agus Martowardojo told journalists in Jakarta on Friday.

The central bank projected Indonesia's economic growth would stand at 4.94 percent in the second quarter of this year, a slight increase from the first quarter, which stood at 4.92 percent.

Based on BI's assessment, Rp 128 trillion (US$9.7 billion) of capital flowed into the country as of July 22.

Agus further said funds expected to arrive from the implementation of the tax amnesty program would hopefully help the country's economy grow better, especially in 2017.

"As instructed by the President, the funds coming from the tax amnesty program will be used to finance productive sectors," Agus said. (vny/ebf)

Source: http://www.thejakartapost.com/news/2016/07/30/bi-expects-5-2-growth-in-q3.html