Growth To Strengthen In 2H On Resilient Domestic Demand

Economic Research	23 June 2017
Indonesia
Economic Update
Growth To Strengthen In 2H On Resilient Domestic Demand As domestic demand and external activities recover, we expect the Indonesian economy to grow by 5.3% YoY in 2H17, faster than the 5.1% estimated for 1H. We assume that the Government may be compelled to record a higher-than-expected budget deficit in 2017, due to weaker-than-expected revenue collection. However, if the Government chooses to cut its expenditure to achieve the deficit target, it could pose a downside risk to our real public consumption and GDP growth forecasts for 2H17. Economist:  Rizki Fajar| +6221 2970 7065