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Govt warned on economic slowdown
In its mid-year evaluation report published on Wednesday, the Institute for Development of Economics and Finance (INDEF) warned President Joko "Jokowi" Widodo's government about the country's economic slowdown
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n its mid-year evaluation report published on Wednesday, the Institute for Development of Economics and Finance (INDEF) warned President Joko "Jokowi" Widodo's government about the country's economic slowdown.
"There are 10 economic indicators the government needs to be cautious about. We think it is because of the ungoverned government, which means it is not powerful enough to govern the country," INDEF economist Enny Sri Hartati said in her speech during the report's launch in Jakarta on Wednesday.
Among the indicators reported are Indonesia's slowing economic growth, which hit 4.7 percent in this year's first quarter, the worst in six years, and decreases in trade sector growth, as well as in the country's trade balance, investment, currency, business tendency index and banking loans, compared to last year.
The INDEF report highlighted the government's unclear macroeconomic direction, although it also took into account the impact of weakening global growth on falling commodity prices and struggling major economies.
"There should be a clearer policy direction. [Economy related] plans are usually incomprehensible and partial," Enny said.
INDEF suggested the government focus on the maritime sector to boost the fisheries industry so it could contribute to economic growth and to be instrumental in tackling the high-cost national logistics issue and food sovereignty to reduce imports.
Enny said INDEF was calling for better coordination between the Industry Ministry and the Trade Ministry to ensure that goods production and trade were in line with ongoing efforts to improve Indonesia's economy, especially after its exports dropped to 11.01 percent between January and April.
The government has maintained its economic growth target of 5.8 to 6.2 percent for 2016, although the House of Representatives insisted the target is unrealistic. (fsu/ebf)(+++)
