Finance Minister Announces Fiscal Policies of 2015
21 May 2014 01:42 WIB
TEMPO.CO, Jakarta - Indonesian Finance Minister Chatib Basri has announced the macro-economic and fiscal policies of 2015 that were made in accordance with the current domestic and global economic development, as reported by Antara News.
"The draft document of macro-economic and fiscal policies 2015 is an explanation of directions and strategies for the government to respond to the dynamic economy and meet the challenges of strategic issues," remarked Minister Chatib during a plenary meeting with the House of Representatives on Tuesday.
Chatib explained that the global economic growth in the period between 2014 and 2015 was forecast to improve and be higher than 2013, but several ongoing challenges and risks hampered the growth, such as the sluggish economic growth in China, the risk of global liquidity shock as the effect of tapering off in 2014, the Feds plan to hike the interest rate in 2015, and the start of the ASEAN Economic Community (AEC) in 2015.
With regard to domestic challenges, Indonesia faces some major issues related to the governments support in infrastructure, energy source, and the short-term effects of raw mineral export ban as an effort of down-streaming policies, income disparity, and fiscal stability.
"In general, the economic growth had slowed down from 5.8 percent in 2013 to 5.5 percent in 2014. The slowdown was majorly caused by export performance, sluggish credit for business, high interest rate, low prices of international commodities, and the short-term effects of the raw mineral export ban," Chatib noted as quoted by Antara News.
ANTARA | HERU
