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Jakarta Post

Economy see 'paradoxical growth'

  • The Jakarta Post

    Bogor

  /   Thu, March 6 2008   /  01:21 am

Economists attending a discussion in Bogor on Wednesday to review the country's economic performance over the last five years concluded that Indonesia suffered from a paradox in growth. International Center for Applied Finance and Economics director Iman Sugema said an excess of liquidity had become the main character of Indonesia's economy. However, he said, the superfluous funds, which theoretically came from gains generated from trade and services, had not been reflected in a growth in investments. "Indonesia's success in improving its exports between 2003 and 2007 has not been accompanied by exporters' willingness to invest their surpluses here," he said. In short, he said, the growth of export value, which benefited from the increases of commodity prices, failed to generate growth in production capacity, particularly in sectors such as agricul...