TEMPO.CO, Jakarta – The Asian Development Bank (ADB) has revised the projection of Indonesia’s economic growth in 2014 and 2015. Previously, Indonesia’s economy was projected to grow by 5.7 percent this year, but was later revised to 5.3 percent.
ADM projected that Indonesia’s economy would grow by 5.8 percent in 2015—which is lower than the earlier 6 percent. According to ADB’s deputy country director Edimon Ginting, the country’s economic growth is declining because of mineral bans and tighter monetary policy.
“As a result, exports will decline,” Edimon said on Thursday, September 25, 2014.
In the first half of 2014, Indonesia’s gross domestic product slowed to 5.2 percent, which was the lowest since 2009. The cause of the slowdown, Edimon said, was Bank Indonesia’s policy to limit domestic demands in order to control inflation and address the current account deficit.
Exports declined by 2.3 percent in the first semester, while imports decreased by 4.4 percent. The trade surplus in the first half soared almost three folds by Rp2.9 billion (US$241,700) compared to last year's. The service trade balance and income balance deficits generated current account deficit of US$13.3 billion, accounted for 3.1 percent of the gross national product (GNP).
To boost the economic growth by 0.5 percent in 2015, Edimon said, president-elect Joko Widodo and vice president-elect Jusuf Kalla must have plans to reform policies to improve investment climate and accelerate infrastructure development.
TRI ARTINING PUTRI