Third Package Economy Policy Aimed To Support Growth At 6%

Rabu, 19 Maret 2014 | 09:17

The Indonesian government is optimistic that this year's economic growth to reach 5.7% -6% or higher than predicts international rating agency Fitch Ratings of 5.3%. "Each institution could have projected the economic growth and the Indonesia’s current account deficit, the government clearly still maintains focus and remain optimistic targets," said Deputy Finance Minister II Bambang P.S. Brodjonegoro as reported by the Ministry of Finance on Monday (03/17/2014).

In order to achieve the target, he said, the government has prepared a policy package volume III which will be issued in the near future.

"The package is intended to increase investment and reduce imports,"

Earlier, President Director of Fitch Ratings Indonesia Baradita Katoppo stated that Fitch estimates Indonesia's economic growth will only grow in the range of 5.3%. However, such prediction may be revised upward because of the Democratic Party this year.

“Contributions on election spending and export growth can be a helper of economic growth," he said.

He added that Indonesia's economic growth slowdown caused one of Indonesia's export performance is not optimal. This is in line with the weakening demand from countries like China. Meanwhile, imports of oil and gas will still be quite high.

Although Ficth Ratings estimates that Indonesia's economic growth will slow down, he said, but overall, Baradita sees the risks of Indonesia will be well-mitigated. "The measures taken by the government is expected to manage the risk of pressure as what happened last year."

by Ismail Fahmi, Hadijah Alaydrus