Indonesia has a lot of inflation pressures, with possible increases in electricity and telephone tariffs in the coming months. We also have seasonal pressures from rising food prices and educational expenses in the middle of the year. |
It was better than expected. We had expected the figure would not jump that much. Some sectors, such as telecommunications, still offers good prospects, with high demand and relatively low penetration rate. This sector will likely continue leading the investment for this year. |
The government delayed its budget spending till the second half of the year. |
The growth was slower because the effect of the Oct. 1 fuel price increases was larger than had been previously expected. There were also many delays in infrastructure projects, which explain the lower deficit and slower growth. |