Indonesia’s economy probably expanded at the fastest pace in a year in the fourth quarter as lower interest rates and government stimulus spurred consumer spending.
Southeast Asia’s largest economy grew 5 percent in the three months to Dec. 31 from a year earlier, compared with 4.2 percent in the previous quarter, according to the median forecast of 18 economists in a Bloomberg News survey. The statistics bureau is due to release the data at about 10 a.m. tomorrow in Jakarta.
Asian economies from China to Vietnam are picking up speed after policy makers boosted spending and cut borrowing costs to counter the global recession. Indonesia has fared better than its neighbors during the slump as it relies less on exports and consumer confidence has been buoyed by the most stable political climate since the ouster of former dictator Suharto in 1998.
“For Indonesia, the risks have nothing to do with politics,” Nikhil Srinivasan, who helps manage about $30 billion as Singapore-based chief investment officer for Asia and the Middle East at Allianz Investment Management, said in an interview in Jakarta. “The only worry is making sure they push infrastructure so that growth can be more than 5 percent.”
“Investors have confidence in Indonesia,” said Handy Yuinanto, a fixed-income analyst at PT Mandiri Sekuritas in Jakarta. “Indonesia has more positive stories.”
