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Economy to grow by 5.6% in 2015: Indef
The Institute for the Development of Economics and Finance (Indef) has predicted that the Indonesian economy will grow by 5
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heInstitute for the Development of Economics and Finance (Indef) has predictedthat the Indonesian economy will grow by 5.3 to 5.6 percent next year, lowerthan the government's target of 5.8 percent.
'The Indef forecast is based on pressuring factors, including exports that cannot be boosted. This is not only because of the global condition but is also due to the fragile structure of our industry,' executive director of Indef Ahmad Erani Yustika said in his address to a meeting on the Indonesian economic projection in 2015.
The government may be optimistic about achieving the economic growth target of 5.8 percent, as fiscal room has been created to develop the economy by building infrastructure and providing social protection to the poor. However, the impact of the government's programs will not be felt in 2015.
'There is still a time lag in the economic field. For instance, infrastructure that will see its construction begin in January 2015 will be completed only at the end of the year and can be enjoyed only by early 2016. So hindrances to economic growth will remain unsolved next year,' Erani explained.
He emphasized that the government must make the bureaucracy more efficient so it can contribute 0.2 percent of national economic growth.
'What the government can do is improve bureaucracy, so that it can contribute to economic growth, albeit by not more than 0.2 percent,' he stated
