Indonesian economy grows slowest in 4 years

Indonesian Gross Domestic Product ( GDP) registered a growth of 5.78 percent last year, the slowest since 2009, as the global economic fallouts eroded demand of the country's exports, national statistic bureau said here Wednesday. Head of the bureau who goes with a single name Suryamin announced that the economy expanded by 5.72 percent at the final quarter last year. "The growth is in line with the weakening of the economy globally,"he told a press conference at the bureau headquarters. Nevertheless, the chairman was upbeat over the prospect of the Southeast Asia's largest economy as the global economy has indicated recovery. "The global economy has picked up, especially China, and we have seen our exports have ramped up,"said Suryamin. Indonesian economy accelerated at 6.23 percent in 2012, 6.5 percent for 2011, 6.1 percent in 2010 and 4.5 in 2009, according to data from the bureau. Huge household consumption, export and investment are the main contributors of the GDP in Indonesia. Indonesia exports have largely bounced back in December by chalking up 10.33 percent growth to 16.98 billion U.S. dollar that pushed trade surplus up 1.52 billion U.S. dollar, the third consecutive month of surplus in trade balance, Suryamin said on Feb. 3. Indonesia touched 776 million U.S. dollar surplus in November after registering 50 million U.S. dollar surplus in October, according to the bureau. But the country's broad export ban on its mineral ores which is aimed at extracting more revenue and ramping up downstream sector may erode exports this year. The shipment of the mineral concentrates has been completely halted since the ban came into effect on Jan. 12. Indonesia is the world's biggest exporter of nickel ore, thermal coal and refined tin and home to the world second-biggest copper mine. The Indonesian central bank foresees the inflation accelerates at slower pace of 3.5 to 5.5 percent this year. The central bank on Dec. 12 held its benchmark interest rate unchanged at 7.50 as inflation was slowing and trade balance had picked up, but many urged to reduce the rate as it may hamper growth. The Indonesian economy is projected to grow slower this year at 5.5 percent due to sagging of global economy, Finance Minister Chatib Basri has said.