Bank of Indonesia Prediction About Indonesia Economic Survey 2013

Indobusiness - Slowing economic growth in the fourth quarter of 2012 is projected had little influence on the expansion of business activities in early 2013. The survey results were released business activities of Bank of Indonesia (BI) said, in the first quarter this year, the projected expansion of business activities will be higher than the previous quarter.

"The largest expansion occurred in the manufacturing sector and agriculture, plantations, livestock, forestry and fisheries," said BI survey. Only the services sector, according to this survey which will not be expanded in 2013.

The same survey also said the projected future expansion of up to six months so that business conditions are more conducive than the fourth quarter of 2012. This condition will impact the increase in employment in the first quarter of 2013.

BI Survey also highlights the impact of plans to implement the increase in electricity tariffs and minimum wage workers. According to the survey, as well as rising prices of goods and inflation will occur in the first quarter of 2013 as the impact of rising production costs. Highest price increase is expected to occur in the processing sector, mining and quarrying.

However, the realization of the investment in the first half of 2013 is expected to rise higher than the second half of 2012 with the majority of them are new investments. Manufacturing industry and finance, real estate and business services sector is expected to be an investment in this field.

BII economist Juniman said, BI survey results in line with current conditions. According to him, in the first quarter of 2013, business conditions began to squirm. If in the fourth quarter of 2012 that put a lot of corporate investment, in the first quarter of 2013, corporate re-boost investment.

In terms of global economic conditions in 2013 are also expected to be better than last year. Increased domestic demand such as auto sales and cement sales would be an indicator of improving economic conditions it. "If you look at the current condition, capital flows are also still on the rise reflected the decline in stock prices and bond yields. Means that investment is still rising," said Juniman, in Jakarta.

Although inflation is expected to be higher than last year, Juniman see 2013 inflation would still be controlled in the range of 5 percent. Likewise with the current exchange rate is weaker following the fundamentals, but the fluctuation is still awake.