BI and Ministry of Finance Differ on 2014 Economic Growth Predictions

Fathan Qorib, Andin Aditya Rahman

The Governor of Bank Indonesia (BI), Agus Martowardojo, predicts that Indonesia’s economic growth will increase from 6.3 percent to a range  from 6.4 to 6.8 percent in 2014.

Agus made this statement during a meeting on the2014 Draft State Budget with Commission XI of the House of Representatives (House).

The meeting was also attended by the Minister of Finance, the National Development Planning Board (Bappenas), and Statistics Indonesia (BPS).

According to Agus, the predicted increase in Indonesia’s economic growth in 2014 is due to global economic improvements that are mainly sustained by the US economy.

He further added that China’s economic recovery has also played a part in developing the global economy.

Agus continued by comparing Indonesia’s current economic growth, which is so far undermined by global economic conditions that are not yet prudent. The recent policy to raise the price of subsidized fuel will also deter national economic growth.

In contrast, Minister of Finance Chatib Basri targets Indonesia’s economic growth in 2014 to range from 6.4 to 6.9 percent.

This is evident, Chatib explained, from the increase in global economic growth from 3.3 percent to ranging from 4 to 5 percent.

Despite the global economic growth increase, the Minister of Finance asserted that these figures still suggests unsafe global conditions.

“If it is normal it will be 6 percent,” stated Chatib.

On another note, Sadar Subagyo, a member of Commission XI at the House, noticed and criticized the difference between the predictions on Indonesia’s economic growth made by BI and the Ministry of Finance. This discrepancy, according to Sadar, indicated rivalry between BI and the Ministry of Finance.

However, Markus Mekeng, another member of Commission XI of the House, disagreed by stating that such a difference in prediction is necessary.

According to Markus, this indicated BI’s independence from the Government in their opinion on the economy.

“It is correct for them to differ. BI must stand alone on its own, so that we can see the economy clearer,” concluded the Commission XI member.

(hot/kc)

Fathan Qorib, Andin Aditya Rahman

The Governor of Bank Indonesia (BI), Agus Martowardojo, predicts that Indonesia’s economic growth will increase from 6.3 percent to a range  from 6.4 to 6.8 percent in 2014.

Agus made this statement during a meeting on the2014 Draft State Budget with Commission XI of the House of Representatives (House).

The meeting was also attended by the Minister of Finance, the National Development Planning Board (Bappenas), and Statistics Indonesia (BPS).

According to Agus, the predicted increase in Indonesia’s economic growth in 2014 is due to global economic improvements that are mainly sustained by the US economy.

He further added that China’s economic recovery has also played a part in developing the global economy.

Agus continued by comparing Indonesia’s current economic growth, which is so far undermined by global economic conditions that are not yet prudent. The recent policy to raise the price of subsidized fuel will also deter national economic growth.

In contrast, Minister of Finance Chatib Basri targets Indonesia’s economic growth in 2014 to range from 6.4 to 6.9 percent.

This is evident, Chatib explained, from the increase in global economic growth from 3.3 percent to ranging from 4 to 5 percent.

Despite the global economic growth increase, the Minister of Finance asserted that these figures still suggests unsafe global conditions.

“If it is normal it will be 6 percent,” stated Chatib.

On another note, Sadar Subagyo, a member of Commission XI at the House, noticed and criticized the difference between the predictions on Indonesia’s economic growth made by BI and the Ministry of Finance. This discrepancy, according to Sadar, indicated rivalry between BI and the Ministry of Finance.

However, Markus Mekeng, another member of Commission XI of the House, disagreed by stating that such a difference in prediction is necessary.

According to Markus, this indicated BI’s independence from the Government in their opinion on the economy.

“It is correct for them to differ. BI must stand alone on its own, so that we can see the economy clearer,” concluded the Commission XI member.

(hot/kc)

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