Indonesia: Govt Confident to Meet 2018’s 5.4% Growth Target

• Sep 11, 2017

TEMPO.CO, Jakarta – The government is still confident that the economic growth target of 5.4 percent as set in the 2018 state budget draft can be achieved. This confidence stems amid various global and domestic economic challenges to be faced next year.

This was conveyed by Finance Minister Sri Mulyani when discussing the state budget draft with the DPR’s Commission XI in Jakarta on Monday, where some House members questioned the government’s ability to achieve its 2018 economic growth target.

“We still think that 5.4 percent is achievable; although the work will be extra hard,” she said.

Sri Mulyani said that to meet the target, consumption must grow above 5 percent. In 2018, consumption is targeted to grow 5.1 percent.

According to the Finance Minister, the biggest challenge in 2018 is bank credit growth. Banking credit has to be strong enough to sustain domestic economic growth.

“Investment credit should grow higher, from the 11-13 percent this year to 13-15 percent next year,” she said.

Sri Mulyani also expects optimum spending from SOEs and investment contributions from the capital market.

Source: https://en.tempo.co/read/news/2017/09/11/056908077/Govt-Confident-to-Meet-2018s-54-Growth-Target