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Import Determines Economic Growth, Sri Mulyani Says

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14 September 2018 13:00 WIB

Indonesian Finance Minister Sri Mulyani Indrawati gestures during a panel discussion in Nairobi, Kenya January 25, 2018. REUTERS/Thomas Mukoya

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani aimed to achieve 5.3 percent economic growth in 2019. However, she explained, the figure might decrease due to the downside risk, such as the declining import due to the Rupiah depreciation against the US Dollar.

“The economic growth may slip to 5.15 percent which influenced by the declining import due to Rupiah depreciation. Investment and consumption may also be affected. If that happens, the economic growth may lower to 5.15 percent,” said Sri Mulyani at the House of Representative (DPR) building, Thursday, September 13.

Read: Sri Mulyani State Budget Deficit Down to Rp150tn 

The finance minister explained the downside risk might occur since it was influenced by the import. Sri hoped the decline of import would boost the export. “The growth momentum should be quite positive but we have to concern on the investment growth that we have expected to rise above 7 percent thus far,” she added.

Sri Mulyani considered the target of 5.3 percent economic growth was still realistic given by the external factors. “The figure cannot be separated from the domestic economic issue which is affected by the global condition,” she said.

Earlier, the Central Statistics Agency (BPS) noted that Indonesia's economic growth in the second quarter of 2018 reached 5.27 percent, which had been previously expected at 5.16 percent. “It turns out to be good,” said Sri Mulyani on August 6, 2018.

KARTIKA ANGGRAENI | CAESAR AKBAR




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