Kedutaan Besar Republik Indonesia
Embassy of the Republic of Indonesia
Ambassade de la RÉpublique d'Indonésie

Govt Optimistic about Achieving 7 percent Economic Growth in 2017

Jakarta (ANTARA News) – Finance Minister Bambang Brodojonegoro is optimistic that the government can achieve 7 percent economic growth in 2017 by improving economic fundamentals that will strengthen Indonesias resilience to global and domestic pressures.

“We continue to improve our economic fundamentals. The ratio of non-performing loans has been curbed, and the fiscal and current account deficit has been reduced. So the economy is very likely to expand by 6 percent in 2016 and by 7 percent in 2017,” he said at a meeting on the national development plan for 2014 here on Thursday.

Resistance to global and domestic pressures is a prerequisite to a strong state economy, he added.

Global pressure remains a challenge following the normalization of the U. S. monetary policy, which can put pressure on the liquidity of developing nations like Indonesia, Brodojonegoro stated.

“In the context of globalized economy, there must not be a mini crisis in the country. That is the requirement for our economy to continue to expand,” he explained.

The minister further noted that efforts to improve the economy must target economic fundamentals with long-term impacts.

Several steps should be taken to improve economic fundamentals, including diverting fuel subsidy to productive sectors to make fiscal budget healthy, he pointed out.

Moreover, Brodojonegoro believes that improving the quality of fiscal budget will help the government accelerate expenditure on productive sectors, which will eventually boost the economy.

Having received a wider fiscal room, the government has mapped budget allocations for strategic sectors, including infrastructure, he affirmed.

The government will always pay attention to budget allocations for social protection and rural development to minimize economic disparities among regions in the country, the finance minister observed.

Although economic growth can be accelerated, Brodojonegoro pointed out that the government will make a constant effort to curb the budget deficit to 2 percent of the gross domestic product.

Hopefully, the budget deficit can be maintained at 1 percent after the five-year term of the government of President Joko Widodo, he said.

Source, Thursday 18 December 2014