President Jokowi: Indonesia entering era of low inflation

27 July, 2017 | Source: Antara News

President Joko Widodo (Jokowi) said Indonesia already enters years of low inflation, with inflation around 3 percent in the past two years.

"In 2015, the countrys inflation was only 3.36 percent , down to 3.02 percent in 2016. In the first quarter of 2017, the inflation was 4 percent year-on-year," the president said when opening a coordinating meeting on inflation control, 2017 here on Thursday.

Jokowi said keeping inflation under control and economic growth are is key to success in managing the economy in the region as well in the center.

He said the countrys inflation rate is low as all know the function and benefit of controlling inflation.

In economic growth, Indonesia is the third highest after China and India among the G20 countries.

"The global economic condition is still in deep slump, all countries are facing heavy pressure," he said.

He said household consumption is still the main driver for economic growth, therefore, the buying power of the people should be maintained at an adequate level, adding attention is also needed to speeding up the government spending.

The government has always been late in making fund available from regional budget, but spending is pushed faster toward the end of year, he said.

He said government spending should start early every year such as for advance payment, adding "We must not maintain the habit of keeping funds idle in bank too long.

The president also stressed the importance of investment and exports as the drivers for economic growth, saying "We must not rely only on state budget stimulus for economic growth.

He said exports to a number of countries such as the United States, Europe and Latin America decline on economic slump in those region.

"However, there must always be opportunity such as shown by South Sulawesi, which recorded a high economic growth," he said.

The economy of South Sulawesi grew 7.4 percent and Makassar alone recorded a higher growth of 7.9 percent.

Jokowi reminded regional administrations to improve service for investment license especially in speed.

"In the present era of Information Technology, licensing process should be finished in hours not days, weeks, months or years," he said.

 

The Asian Development Bank (ADB) has projected that Indonesias economic growth will continue to strengthen and be resilient to global uncertainties in 2017 and 2018.
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