TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati announced that the government is keeping an eye on the upcoming global risk between the United States and China, which can affect Indonesia’s national economic climate.
“Especially with the United States that has a protectionist tendency. We are also monitoring the risk that would arise from China’s economic rebalancing,” said Sri Mulyani on Wednesday.
Sri Mulyani explained that the geopolitical tension between the United States and North Korea could also disrupt global economic stability. She also highlighted UK’s Brexit and the continuous terrorist threats. “Their unsustainable social safety net will place more burden on the global economy,” she claimed.
In order to achieve next year’s economic growth of 5.1 percent, Sri Mulyani said that the government will attempt to strengthen the public’s purchasing power by maintaining a low inflation rate. She reasons that a well-kept inflation rate will spark consumer’s confidence to spend and accelerate the economy in general.
The government projects an economic growth of 5.4 percent for the 2018 state budget (APBN) with 3.5 percent inflation. The state budget also targets rupiah’s exchange rate towards US dollar to be within Rp13,500 and a three-month SBN interest rate of 5.3 percent.
