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 governments of the United States (US), Australia, and Sweden have lauded the Indonesian governments diplomatic steps to provide humanitarian assistance to communities in Rakhine State, Myanmar.
President Joko Widodo (Jokowi) said Indonesia already enters years of low inflation, with inflation around 3 percent in the past two years.
President of the World Bank group, Jim Yong Kim, here on Tuesday expressed his support to the Indonesian governments plan on the tax reform program, which aimed to increase the state budgets income.
President Joko Widodo (Jokowi) plans to visit Turkey to develop partnership in strategic industry and economy with the country, Foreign minister Retno Marsudi said here on Monday at the state palace after a meeting prior to the presidents visit to Turkey and Germany.
Indonesian Foreign Minister Retno Marsudi and her Maldivian counterpart Mohamed Asim will hold a bilateral meeting in Jakarta on Wednesday (June 21) to discuss the cooperation in tourism sector.
The United Nations Food and Agriculture Organization (FAO) has praised Indonesia for its role in fighting illegal, unreported, unregulated (IUU) fishing, the Indonesian Embassy in Rome said.
Address: 1068 Budapest, Városligeti fasor 26. | MAP |
Phone: (+36-1) 413 3800 Fax: (+36-1) 322 8669
E-mail: embassy@indonesianembassy.hu