Indonesia Finance Minister forecasts 4.8% growth

09 November, 2015 | Source: Antara News

Jakarta (ANTARA News) - Finance Minister Bambang Brodjonegoro has forecast that Indonesias economic growth at the end of the year would only reach 4.8 percent, after reviewing the growth till the third quarter of this year.

"It is hard and could only reach a maximum growth of 4.8 percent," the Finance Minister said in Jakarta on Friday.

Bambang said that year-end economic growth prediction could be achieved if the growth in the fourth quarter 2015 can reach or almost reach 5.0 percent. "It should be close to 5.0 percent in the fourth quarter," he noted.

The Central Bureau of Statistics (BPS) had previously recorded Indonesias economic growth in the third quarter at 4.73 percent (year-on-year), or higher than in the second quarter when it stood at 4.67 percent.

"This growth is better than in the first quarter when the economy grew at 4.72 percent or the second quarter when it grew at 4.67 percent," Suhariyanto, deputy for balance and statistics analysis of the BPS, said.

Thus, the accumulative growth till the third quarter of 2015 reached 4.71 percent or better than the accumulative growth in the first semester, which stood at 4.69 percent.

Bank Indonesia (BI) had said earlier that the national economy will grow at a higher rate in the fourth quarter than in the previous quarters, thanks to the rising investment made by the government.

"We hope that during the fourth quarter, investment in development projects as also private investment, will increase, thereby contributing to the national economy," BI Governor Agus Martowardojo said at a press conference here on Wednesday.

He said the economic growth has begun showing a positive trend. The central bank has predicted the economic growth will be higher in the fourth quarter than in the previous two quarters.

BI predicted that the economic growth will reach 4.85 percent in the fourth quarter.

"As I have observed, government investment and spending had begun improving in the third quarter. I hope the private sector will play a role during the fourth quarter as a great deal of government spending has not been realized as yet. Of course, the private sector must prepare for it," he said.

He further expressed the hope that an improvement in the economy in the second semester of this year will add to the countrys momentum and result in positive growth in the future.

He also welcomed the House of Representatives approving the 2016 state budget and hoped the government can carry out the tendering process, particularly in the infrastructure sector, soon.

 

Strong consolidation needed to face global economic turbulence Reporter: Agus Salim 3 hours ago President Joko Widodo (Jokowi) addressing at a ceremony commemorating the 50th anniversary of the Indonesian Chamber of Commerce and Industry (Kadin) on Monday night. (Agus Salim) Jakarta (ANTARA News) - President Joko Widodo (Jokowi) reminded the country`s fiscal and monetary authorities and the business of the need for strong coordination and consolidation to face the global economic uncertainties. "Uncertainties in the global condition, trade war between the United States and China, increase in interest rate, crisis in Argentina and Turkey, would necessitate strong consolidation and coordination between the monetary and fiscal authorities and the business sector," Jokowi said addressing a ceremony commemorating the 50th anniversary of the Indonesian Chamber of Commerce and Industry (Kadin) here on Monday night. He said good coordination and consolidation would make it easier to develop the public and market confidence. "It is the same as in developing a corporation. Trust brand is vital. The state needs that. Building up trust and market confidence that the international communities, domestic market believe that we are working seriously to settle state problems," he said. He said Indonesia is a big country with a population of 263 million, the fourth largest in the world, having 17,000 islands and made up of 34 provinces. "It is not easy to manage such big country . Each area has own cases, and requirement different from each other," he added. He said developing Indonesia concerns not only economic and political aspects. "If we are concerned only with economic and political gains we need only to focus on development of Java, which is home to 60 percent of the country`s population, but we think of a nation. We are concerned not only with expanding business empire leaving Papua, North Maluku, NTT and other eastern Indonesian regions to suffer in backwardness," he said. Currently imbalance is still wide in infrastructure between the country`s western, central and eastern regions, he said, adding Indonesia is seeking to catch up with other countries. He cited three years earlier, Indonesia had only 231 water reservoirs and dams as against 6,000 dams in the United States and 110,000 dams in China. "This is fact that has to be presented and we have to do something about it," he said. He also spoke about progress made in the construction of toll roads saying after the Jagorawi toll road was operational until early 2015, Indonesia had only 780 km of toll road as against China`s toll roads totaling 280,000 km. "We need to know the condition we are in before we start working hard to make up for the gap especially in eastern Indonesia," he said. Reporting by Agus Salim Editing by Albert Saragih Editor: Bustanuddin COPYRIGHT © ANTARA 2018 AddThis Sharing Buttons Share to FacebookShare to TwitterShare to Google+Share to WhatsAppShare to LINEShare to PinterestShare to GmailShare to EmailShare to More Prev News Indonesia calls for reconciliation and justice for peace Next News Puan attends UN meeting on world peace Comments
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