The World Bank has revised its estimated rate of Indonesian economic

growth down to 5.2 percent in its April edition of the East Asia and
Pacific Economic Update report, compared to the 5.3 percent set in the
January edition of the Indonesia Economic Quarterly.

However World Bank Indonesia economist for macroeconomics and

fiscal management Dhruv Sharma said the 10 basis points (bps)
decline was largely mechanical. The more important thing was that it
projected Indonesia's economy would grow in the next three years.

"We have an upward trajectory for Indonesia over the next three years
as the economy reached bottom last year," he said in a press briefing
in Jakarta on Thursday.

The report forecast 2018 and 2019 gross domestic product (GDP) to
grow to 5.3 and 5.4 percent respectively, higher than the 5.02 percent
in 2016. That is in line with global economy growth, which is predicted
to be 2.7 in 2018 and 2.9 percent in 2019, compared to 2.3 percent in
2016.

World Bank Indonesia acting lead economist Hans Anand Beck said
Indonesia's growth will be supported by credit growth and higher oil
prices, which also boost commodity prices. "We see developments in
the credit markets are supported by demand for financing because of
foreign investments," he said.

The credit growth would be supported by a lower credit rate as Bank

Indonesia cut its policy rates six times during 2016. However, the
transmission to the bank lending rates in the industry would be seen in
2017. (ags)