Financial Times FT.com

Consumer spending boosts Indonesia

By John Aglionby in Jakarta

Published: August 14 2008 17:01 | Last updated: August 14 2008 17:01

Indonesia’s economy grew a higher-than-expected 6.39 per cent year-on-year in the second quarter of this year, thanks to high commodity prices, strong consumer spending and robust exports.

The figures will give a boost to President Susilo Bambang Yudhoyono as he unveils the government’s 2009 budget on Friday. Ministers say this will include a 55 per cent increase in funds for poverty alleviation programmes and a significant expansion of the education budget.

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