Govt Predicts Economic Growth at 6 Percent Next Year

 
Rofiq Hidayat, Andin Aditya Rahman
 
The Government has announced its forecasts for Indonesia’s economic growth in 2015. It is predicted that growth will be between 5.5 to 6 percent based on a number of contemporary factors.
 
Muhamad Chatib Basri, Minister of Finance, explained that the predicted increased economic growth in 2015 will be supported by continuing macro-economic stability and improved confidence amongst consumers and investors.
 
The Minister added that the estimated target for 2015 also takes into account global economic risks, such as fluctuations in global financial markets. There are also risks associated with the national economy, including high imports and negative impacts on domestic direct investments.
 
“By considering these factors, the economic growth target for the year 2015 of 5.5 to 6 percent is expected to maintain the continuance of long-term economic growth,” Mr. Basri said last Tuesday.
 
Mr. Basri further elaborated that next year’s economic growth will be primarily derived from household consumption, investments, and exports. Specifically for investments, it is expected that the amplified performance of domestic investments will significantly contribute to next year’s economic growth.
 
The expected improved performance of domestic investment will be realized under a better business and investment climate, infrastructure development programs, capital expenditure, increased private sector participation, and continued revisions to the negative investment list (see: ILB No. 2396, and ILD No. 357).
 
“The participation of state-owned enterprises in the national connectivity development projects will also be directed at supporting national logistic systems in order to improve investment competitiveness levels,” added Mr. Basri.
 
The performance of Indonesian exporters is also predicted to improve next year, which will be backed by positive developments in the global market and increased prices for Indonesian export commodities.
 
To further support Indonesian exporters, the Government plans to issue a number of export policies, such as decreasing imports of raw materials and capital goods, as well as developing domestic industrial sectors.
 
“These export and import policies are expected to fix our external balance position, which is under pressure as of late,” concluded Mr. Basri.
 
(hot/kc)
 
Rofiq Hidayat, Andin Aditya Rahman
 
The Government has announced its forecasts for Indonesia’s economic growth in 2015. It is predicted that growth will be between 5.5 to 6 percent based on a number of contemporary factors.
 
Muhamad Chatib Basri, Minister of Finance, explained that the predicted increased economic growth in 2015 will be supported by continuing macro-economic stability and improved confidence amongst consumers and investors.
 
The Minister added that the estimated target for 2015 also takes into account global economic risks, such as fluctuations in global financial markets. There are also risks associated with the national economy, including high imports and negative impacts on domestic direct investments.
 
“By considering these factors, the economic growth target for the year 2015 of 5.5 to 6 percent is expected to maintain the continuance of long-term economic growth,” Mr. Basri said last Tuesday.
 
Mr. Basri further elaborated that next year’s economic growth will be primarily derived from household consumption, investments, and exports. Specifically for investments, it is expected that the amplified performance of domestic investments will significantly contribute to next year’s economic growth.
 
The expected improved performance of domestic investment will be realized under a better business and investment climate, infrastructure development programs, capital expenditure, increased private sector participation, and continued revisions to the negative investment list (see: ILB No. 2396, and ILD No. 357).
 
“The participation of state-owned enterprises in the national connectivity development projects will also be directed at supporting national logistic systems in order to improve investment competitiveness levels,” added Mr. Basri.
 
The performance of Indonesian exporters is also predicted to improve next year, which will be backed by positive developments in the global market and increased prices for Indonesian export commodities.
 
To further support Indonesian exporters, the Government plans to issue a number of export policies, such as decreasing imports of raw materials and capital goods, as well as developing domestic industrial sectors.
 
“These export and import policies are expected to fix our external balance position, which is under pressure as of late,” concluded Mr. Basri.
 
(hot/kc)
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