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Indonesia's economy likely grew over 6% for sixth quarter

13 May 2008, JAKARTA - Indonesia's economy probably grew by more than 6 percent for a sixth quarter as the lowest interest rates in three years spurred spending on homes and cars. Southeast Asia's biggest economy expanded 6.2 percent in the three months to March 31 from a year earlier, about matching the 6.25 percent expansion in the preceding period, according to the median forecast of 17 economists in a Bloomberg News survey. The Central Statistics Bureau will release the data in Jakarta today.
Private consumption, which accounts for about 70 percent of the economy, is likely to cool amid plans by the government to raise fuel prices by as much as 30 percent to ease a subsidy bill estimated at about 14 percent of total revenue. Spending may also drop after Bank Indonesia raised borrowing costs for the first time in more than two years to tame the fastest inflation in 19 months.