InfoAnda - Indonesia posts 6.2 pct growth in second quarter

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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Indonesia posts 6.2 pct growth in second quarter AFP - 1 hour 13 minutes ago Send IM Story Print Indonesia posts 6.2 pct growth in second quarter Slideshow: Full Photo Coverage: Business & Economy JAKARTA (AFP) - – Indonesia said Thursday its gross domestic product (GDP) grew 6.2 percent in the second quarter of 2010 from a year earlier as household consumption, exports and investment picked up. Southeast Asia's biggest economy grew 2.8 percent in the April-June period, faster than the 1.9 percent expansion seen in the first quarter, the Central Statistics Agency said. "The economic growth was helped by improving domestic and external factors," agency deputy chairman Slamet Sutomo told reporters. Household consumption rose five percent on-year during the quarter, investment grew eight percent and exports increased 15 percent, the agency said. The country's central bank on Wednesday kept its key interest rate steady at 6.50 percent despite higher inflation in July, which it blamed on seasonal factors. The annual inflation rate climbed to its highest point this year due to rising food prices, which had put pressure on the central bank to hike rates at Wednesday's meeting. Keeping interest rates unchanged has contributed to the growth, analysts said. "A low bank rate encourages strong domestic consumption. Despite the high inflation, people are still buying but mostly on credit. They spend on items like cars and property," Ciptadana Securities head of sales John Teja told AFP. "While many countries in the world are experiencing a slowdown, Indonesia's growth remains high. This will make Indonesia very attractive to foreign investors," he added. -- Dow Jones Newswires contributed to this story -- Recommend Send IM Story Print Related Articles Chinese city grapples with local-govt loan curbs Reuters - 26 minutes ago Europe shares drift lower, focus on macro data Reuters - 29 minutes ago Ofgem names preferred bidders for wind farm links Reuters - 31 minutes ago Rio Tinto says steel, iron ore prices improving Reuters - 34 minutes ago MONEY MARKETS-Dollar funding costs fall in Asia, NZ swaps ease Reuters - 35 minutes ago News Search Top Stories Barclays bank says net profits soar 29 percent ECB mulls alternatives to rate-cut to spur growth Phelps swims to two titles as Peirsol falls US economy adds private jobs but at lackluster pace Hope for Gulf as BP plugs well, most of the oil gone More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Elite US cyber team courts hackers to fight terrorists Israel cuts down trees that caused Lebanon clashes US obesity growing 'faster than anyone imagined' Spanish resort city readies to host Michelle Obama, daughter BP partner refusing to pay 1.2-billion-dollar oil spill bill More Most Viewed » Parachuting donkey shocks Russian beachgoers Argentine students crack three-decade-old murder mystery World's first full face transplant man appears on TV Paris Hilton caught with cannabis in handbag Calcium supplements linked to heart attacks: study More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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