Financial Times FT.com

Strong consumer spending boosts Indonesia economy

By John Aglionby in Jakarta

Published: August 15 2008 03:00 | Last updated: August 15 2008 03:00

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

The figures will give a boost to President Susilo Bambang Yudhoyono today as he unveils the government's 2009 budget. 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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