Weak consumption has been the key factor keeping growth well below the 7% goal by 2019 set by President Joko Widodo, whose five-year term ends next year. The statistics bureau said a near 8% annual growth in investment, partly stemming from the government's infrastructure drive, was "very significant". Leo Putra Rinaldy, an economist at Mandiri Sekuritas, said Q1 growth was "infrastructure driven, but there was no pick-up yet in private consumption." Government officials said they need to guard purchasing power by keeping prices low when global oil prices are high and the rupiah currency weak. The tepid growth rate could put the central bank in a bind.

Source: Bangkok Post May 07, 2018 06:00 UTC