TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
RI growth projection 5.3% for 2016
Finance Minister Bambang Brodjonegoro (Antara)Finance Minister Bambang Brodjonegoro has proposed a revised forecast of Indonesiaâs economic growth for 2016, suggesting 5
Change Size
Finance Minister Bambang Brodjonegoro (Antara) (Antara)
Finance Minister Bambang Brodjonegoro (Antara)
Finance Minister Bambang Brodjonegoro has proposed a revised forecast of Indonesia's economic growth for 2016, suggesting 5.3 percent, a slight drop from the 2016 state budget plan's (RAPBN) growth assumption of 5.5 percent.
'We propose a 5.3 percent growth projection for 2016. That's lower than the 5.5 percent growth forecast we proposed in state financial notes,' he said as quoted by Antara news agency on Tuesday. The minister was speaking at meeting on the 2016 RAPBN's macro economy assumptions with the House of Representatives Commission XI overseeing finance and banking in Jakarta on Monday evening.
The meeting was also attended by Bank Indonesia (BI) governor Agus Martowardojo, National Development Planning Minister Sofyan Djalil and Central Statistics Agency (BPS) head Suryamin.
Bambang said the revised assumption demonstrated a more realistic reading of global economic developments, both present and future, but remained optimistic about potential economic improvements in both developed and developing countries.
He said [the earlier figures'] optimism could be seen from their global economic projection, which they predicted to be better than the last two years.
However, the minister said, Indonesia must also keep on guard against China's potential economic slowdown in 2016.
'China's economic growth is projected to slow down to 6.3 percent, not the 6.8 percent initially predicted. Because our economy is closely linked with China, especially on exports and imports, we have to remain vigilant regarding those not-too-promising signs,' said Bambang.
The minister said that despite the revision, Indonesia's economic growth in 2016 would still be supported by government expenditure ' for which allocated funds in the RAPBN 2016 were higher than in previous years ' and by investments as results of the recently released stimulus package.
'Domestic consumption will be only 5 percent next year, or similar to this year's figure, and might even be a slightly lower. However, government spending could be helpful,' said Bambang.
He further said that deregulation efforts and simplified business-permit procedures could help investments to become a source of growth.
On other macro assumptions, such as the inflation rate and the three-month treasury bill (SPN) rate, the minister said that the government did not propose any change, leaving them at 4.7 percent and 5.5 percent respectively. 'The government will continue to safeguard 'volatile food' inflationary pressures to maintain stability there,' he said, adding that the SPN rate was still higher than inflation rate assumptions. (ebf)
