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

Sri Mulyani: Indonesian Economic Growth is Good

TEMPO.CO,A�Jakarta - Finance Minister Sri Mulyani Indrawati said that as a developing country, Indonesia has a good economic growth rate. Sri Mulyani stated that Indonesia is one of the countries with a high growth rate within the last decade.

Sri Mulyani asserted that within the last ten years, Indonesia’s average economic growth rate is still in the level of 5.6 percent despite suffering from the economic crisis in 2008 and 2009. “If there is a country that grows [significantly], it is an achievement,” the Minister said on Thursday, February 23, 2017.

However, Sri said that there are certain issues that must be criticized. Sri notified that the quality of economic growth in Indonesia needs to be analyzed. Sri asserted that in Indonesia, the effect of one percent economic growth against poverty was never the same.

For example, Sri said that back in 2011 until 2012, one percent economic growth managed to decrease the number of poverty by 0.106 percent. On the other hand, in 2013 until 2015, one percent economic growth only decreases the number of poverty by 0.033 percent.

Sri added that high poverty rate areas are still concentrated in villages. In a larger scale, Sri said that poverty remains concentrated in areas outside Java, specifically in Maluku and Papua, where the poverty rate is recorded at 21.9 percent, causing a dilemma for the government in allocating funds in the State Budget.

“It’s not about taking sides but this is a challenge on where to put every penny of the State Budget, and in what form. Because it would mean a lot,” Sri said.