Indonesia: Minister Doubts Economic Growth Target Attainable

• Nov 13, 2017

TEMPO.CO, Jakarta – The National Development Planning Minister and Bappenas chief Bambang Brodjonegoro estimates that this year’s economic growth target is difficult to achieve. In the amended state budget of 2017, the economy is targeted to grow 5.2 percent.

“The government will struggle to reach 5.2 percent,” he said in Jakarta, Monday, November 13.

The difficulty, according to Bambang, is due to low rate of economic growth, which as per the third quarter only reached 5.03 percent. This means that in order to achieve the annual target, the fourth quarter economy should grow more than 5.5 percent.

Bambang said it is too burdensome to attain that amount of growth rate despite expectations of growth in investment, exports, and government consumption. Even if those three indicators grow well, the economy will only grow by 5.2-5.4 percent.

“So on an annual basis the growth rate will only be 5.1 percent,” he said.

As for next year, Bambang sees an opportunity for the economy to grow above 5.2 percent, as long as investments are maintained as in the third quarter.

Other conditions that could support his projection are consumption growth which of more than five percent and a two-digit export growth.

Meanwhile, Bank Indonesia Governor Agus Martowardojo said that the economy will be supported by government spending and consumption, in addition to investments. According to Agus, in the second quarter of 2017, investments in building materials showed encouraging growth.

Source: https://en.tempo.co/read/news/2017/11/13/056913188/Minister-Doubts-Economic-Growth-Target-Attainable