The government has revised its economic growth target downward to 4.7 percent from the previously set 5 percent due to slacking global demand for Indonesian products,state news wire Antara reports.
Acting Coordinating Minister for the Economy Sri Mulyani said Thursday the initial growth target was no longer realistic as the decrease in export and import volumes has been taking its toll since October, which was earlier than expected.
The worst-case scenario for Indonesia's export growth would be zero percent expansion, Mulyani said.
"The total value of exports could grow by zero to five percent, much lower than the nine to 10 percent in 2008," she said.
Bank Indonesia's senior deputy governor Miranda S. Goeltom confirmed the country's economy might be expanding more slowly than expected.
Miranda said the fiscal stimulus plan prepared by the government could significantly boost public consumption and help to sustain the desired level of economic expansion.
"We also expect government plans to raise civil-servant salaries and the regional minimum wage will increase public consumption," she said. (ewd)