Chatib: 5.6% Economic Growth Realistic

TEMPO.CO, Jakarta - Finance Minister Chatib Basri said the government needed to maintain economic growth in the margin that will not threaten economic stability.

"Economic growth at 5.6 percent for next year is realistic and conservative," said the minister yesterday.

The government has considered internal and external factors in determining the economic growth target.

Previously, Golkar Party, the Indonesian Democratic Party of Struggle (PDI-P), the Justice Prosperous Party (PKS), the National Awakening Party (PKB) and the Great Indonesia Movement Party (Gerindra) have questioned economic target of 5.6 percent in the 2015 draft state budget. In the 2014 revised state budget, the government targeted the economic growth at six percent, but the growth in the first half of this year was only 5.2 percent.

Minister Chatib said from the internal side, maintaining domestic economic stability becomes a focus from macro economic policies, especially in improving Indonesia’s external equilibrium position. "Current account has experienced deficit in the last few years. This has affected rupiah exchange rate," he said.

The economic stability must also be maintained since it will provide a solid foundation and becomes a prerequisite for balanced and continuous growth.

From the external side, Indonesia’s economic growth is influenced by the improving global economic growth, especially in developed countries such as the United States and some European countries. However, there are still risks such as China's economic performance that can hamper Indonesia’s economic growth, international commodity’s fluctuated price hike with trends that show degradation and implications from US monetary policies.

GANGSAR PARIKESIT