Economic Slowdown Hampers Job Creation

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  • Suasana kawasan bisnis ibukota dilihat dari kawasan Senayan, Jakarta, Senin (15/10). ANTARA/Andika Wahyu

    Suasana kawasan bisnis ibukota dilihat dari kawasan Senayan, Jakarta, Senin (15/10). ANTARA/Andika Wahyu

    TEMPO.CO, Jakarta - Institute for Development and Finance (Indef) executive director Ahmad Erani Yustika said the country's economic slowdown had affected multiple things.

    “Among the effects are difficulties in job creation," he said on Sunday, November 2, 2014.

    The economic slowdown throughout the year has hampered efforts in job creation and poverty reduction. Improvement in exports and investments is also absent and the economic growth will still be under 5.2 percent.

    Erani said it would be difficult to achieve a 5.2 economic growth rate allowing for the present conditions.

    Last week, Bank Indonesia predicted the country's economic growth in the year's third quarter would be at 5.1 percent, while the overall economic growth was pegged in the neighborhood of 5.2 percent.

    Perry Warjiyo, the deputy governor of Bank Indonesia, said private consumption, export improvement and investments remained the major contributors to Indonesia's economic growth in the third quarter. 

    He added improvement in the government consumption was also among the contributors although lower than previous estimations.

    “This is because the expansion of the government's finances was still limited, to work on the fiscal deficit stemming from subsidy burdens," he said.

    MAYA NAWANGWULAN