Bank Indonesia - Supplied

BI: Papua Economy Expected to Grow Faster

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Bank Indonesia - Supplied
Bank Indonesia – Supplied

Jayapura, Jubi – Papua’s economy is expected to grow stronger in the fourth quarter in 2015, a Bank Indonesia official said.

Overall, economic growth reached 7.97 percent due to net exports growing by Base Effect, the Representative Head of Bank of Indonesia Province Papua, Joko Supratikto to reporter in Jayapura on Wednesday (2/3/2016).

According to him, Base Effect is the community’s basic need, which is the government regulated its cost and the stability of the price of its commodities are often volatile.

“The inflation in Papua decrease from 7.07 percent to 3.57 percent due to Base Effect,” he said.

Concerning to banking, he said, the state of fourth quarter in 2015 generally indicates weakness. On the other hand, the weakening was occurred in collection of gyro and deposit fund that contracting compared to 2014.

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Growth in bank credit decreased but on the other hand the banking intermediation activity remains relatively stable. Bank Loan to Deposit Ration (LDR) increase from 55 percent to 62 percent, meanwhile Non Performing Loan (NPL) decrease from 6.01 percent to 5.03 percent.

Bank Indonesia predicted the economic growth in Papua in 2016 would increase until 9.59 percent compared to 2015. “The main factor that influence such an assessment is the performance of mining sector which is improved,” he said.

The assessment of Bank Indonesia predicts the mining category would be growth up to 10 percent in 2016. “Papua inflation in 2016 predicts to be at interval 3.8 percent to 4.8 percent,” said Joko. (Enrico Karubuy/rom)

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