Finance Ministry projects growth to reach 5 percent this year

14 , 2016 | Source: Antara News

The Finance Ministry has predicted that Indonesias economic growth will stay at 5.0 percent this year due to several factors including spending cut.

"One of the triggering factors is government consumption which falls to 3 percent due to spending cut," the head of the ministrys fiscal policy board Suahasil Nazara said at a working meeting with the House of Representatives Budget Committee at the Parliament Building here on Tuesday.

The other factor is investment which has not grown as expected due to low domestic demand, he said.

He further said the export and import sector still recorded negative growth . Meanwhile, the countrys imports which exceeded its exports have caused the balance of payment to record a deficit.

The 5.0 percent growth rate will be derived from the first-semester growth of 5.04 percent and the projected second-semester growth of 5.0-5.1 percent, he said.

But he believed the economic growth will stay above 5.0 percent for all of this year although it will not reach 5.1 percent . "It can be 5.05; 5.06 (percent, meaning that if it stays at above 5.0 percent it will not be more than 5.1 percent," he said.

The growth forecast of 5.0 percent for 2016 is lower than the target of 5.2 percent set in the revised 2016 state budget. (*)

 

The Ombilin Coal Mining Heritage in Sawahlunto, West Sumatra, was designated as a world cultural heritage during the 43rd session of UNESCO World Heritage Committee in Baku, Azerbaijan.
Indonesia participated in two significant forums at the regional as well as international levels – the 34th ASEAN Summit from June 20 to 23, 2019, and the 2019 G20 Summit on June 28 and 29, 2019.
President-elect of Indonesia Joko Widodo (Jokowi) vowed on Thursday evening that he would become a leader for the entire nation without exception.
Ten leaders of the Association of Southeast Asian Nations (ASEAN) member states have agreed to adopt the ASEAN Outlook on the Indo-Pacific concept.
Syamsuri Firdaus, University of Indonesia′s (UI′s) student, won the first place in the Seventh International Quran Recitation and Memorization Competition held in Istanbul, Turkey, on May 19-26, 2019.
The Jakarta Fair 2019 held at the Jakarta International Expo in Kemayoran, Central Java, from May 22 to June 30 is the venue to showcase prime products from various regions in Indonesia.
Address: 1068 Budapest, Városligeti fasor 26. | MAP |
Phone: (+36-1) 413 3800 Fax: (+36-1) 322 8669
E-mail: embassy@indonesianembassy.hu