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Govt sticks to 5 percent growth target despite IMF's downward revision
The government is holding onto its target for 5 percent gross domestic product (GDP) growth this year despite the International Monetary Fund revising down its projection for Indonesia’s economy in a recent update.
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Navigating global uncertainty: Third Deputy Finance Minister Anggito Abimanyu (left), Second Deputy Finance Minister Suahasil Nazara (second left), Finance Minister Sri Mulyani Indrawati (second right) and First Deputy Finance Minister Thomas Djiwandono (right) prepare for a press conference on March 13 at the Finance Ministry building in Jakarta. (TJP/Deni Ghifari)
T
he government is holding onto its target for 5 percent gross domestic product (GDP) growth this year despite a recent downward revision from the International Monetary Fund (IMF) in light of escalating global trade tensions.
Speaking at an online quarterly press briefing of the Financial System Stability Committee (KSSK) on Thursday, Finance Minister Sri Mulyani Indrawati said “after taking into consideration several factors”, Indonesia’s GDP growth would be “around 5 percent” this year.
The factors she mentioned included so-called “reciprocal” tariffs introduced by the United States earlier this month, which are expected cause serious disruption to global trade and drive down the volumes of goods shipped across borders.
The minister said Indonesia could mitigate the impact of US import tariffs on the domestic economy by exporting more to countries in the region, namely the ASEAN Plus Three countries, which include the ASEAN member states along with China, Japan and South Korea.
Read also: US tariffs a serious threat to RI GDP growth, Sri Mulyani warns
She also mentioned Europe as a market with potential for increased exports, as well as the BRICS group of emerging economies, which Indonesia joined earlier this year to become the tenth member.
The IMF revised down its projection for Indonesia’s growth this year to 4.7 percent in the latest edition of its World Economic Outlook (WEO) report, published on Tuesday.
