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Poverty Rate Reduction Faces Difficulties, Analyst Says

6 August 2014 16:40 WIB

Sejumlah pekerja menyelesaikan pembuatan kampung deret di Bendungan Hilir, Jakarta, Kamis (15/5). Program Gubernur DKI Jakarta, Joko Widodo untuk mengentaskan kemiskinan dan mensejahterakan rakyat Jakarta adalah pembangunan Kampung Deret di 27 Wilayah DKI Jakarta dan salah satunya Bendungan Hilir. TEMPO/Dian Triyuli Handoko

TEMPO.CO, Jakarta - Ahmad Erani Yustika, economic observer at the Institute for Development of Economics and Finance (Indef), predicted that poverty rate would be hard to decline following the slow economic growth in the second quarter and the lack of new jobs.

Erani also said that all sectors are experiencing difficulties and have experienced a declining growth.

According to Erani, economic growth in the second quarter, which is 5.12 percent, also decreases purchasing power. In addition, efforts to accelerate exports will also face many obstacles. "Trade balance deficit improvement will not be easy," he said.

Assumption in the revised state budget predicted that the rate of economic growth in 2014 will reach 5.5 percent. Erani said that the target is too ambitious and predicted that economic growth will only reach 5.2 percent.

The Central Statistics Agency previously released data that shows economic growth in the second quarter of 2014, which was recorded at 5.12 percent, lower compared to the predicted 5.19 to 5.3 percent by Bank Indonesia.

KHAIRUL ANAM

Poverty


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