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Govt Relies on Investment to Boost Economy

30 September 2014 13:16 WIB

Menteri Keuangan Chatib Basri. TEMPO/Dhemas Reviyanto

TEMPO.CO, Jakarta - The government is confident that next year's economic growth target of 5.8 percent can be achieved thanks to contributions from the investment sector. "Investors' interest and potential in Indonesia are huge. It's now up to how we well make it happen," Finance Minister Muhammad Chatib Basri said last weekend.

Therefore, said Chatib, the new government must be able to create investment climate and bureaucratic measures that can attract foreign investors. Chatib mentioned a number of classic investment problems that need to be addressed, including land legality, electricity, as well as bureaucracy.

"Hopefully, the Investment Coordinating Board will help."

The Asian Development Bank (ADB) recently cut the 2015 national economic growth assumptions from six percent to 5.8 percent. For this year, the ADB projected Indonesia's economy to grow by only 5.3 percent.

Meanwhile, Bank Central Asia chief economist David Sumual said that national economy will only grow between 5.4 and 5.5 percent in 2015. "External challenges are more influential," he said. 

AISHA SHAIDRA



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