Institute for Research on Economics and Society – Faculty of Economics and Business – University of Indonesia

MACROECONOMIC ANALYSIS SERIES: Quarterly Economic Outlook, Quarter II-2019

Growth momentum in the next quarter is likely to continue, although some volatility will be seen in the near term after the 2019 general election. We maintain our economic growth forecast in Q2019 5,2 at XNUMX%, due to stronger household consumption growth forecast. Household spending, which remains the main driver of Indonesia's economic growth, is projected to strengthen throughout the year due to several new policy measures absent political disputes that could pose additional risks to the country in the election outcome. However, there are concerns about minimizing uncertainty that could affect growth and the fiscal outlook amidst the political transition.

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