Economic Growth Slowing, Economic Team Must be Evaluated

TEMPO.CO, Jakarta - Enny Sri Hartati, the Executive Director of the Institute for Development of Economics and Finance, said that the Working Cabinet's economic team must be evaluated as economic growth in the first quarter was only 4.71 percent.

"Seeing this declining trend, there must be a mismanagement in economy and it has to be evaluated immediately to reach annual growth target of 5.7 percent," said Enny on Tuesday.

Enny said that this first quarter's economic growth is the lowest since 2009, when global economy slumped due to global economic crisis in late 2008. Moreover, the growth in last year's first quarter was 5.1 percent.

Enny continued that macro and micro economy in the Working Cabinet must also be evaluated to find out which one that slows down the team's performance.

"Annual production in agriculture, industry and mining decreases while the trade sector needs to sell more to boost growth," said Enny.

Bank Indonesia's communication director Tirta Segara said the slow economic growth in the first quarter could bring down economic growth throughout the year to lower limit range of 5.4 to 5.8 percent.

This growth rate achievement will be influenced by how much and fast the realization of various planned infrastructure projects. "Consumption rate must also be maintained and export must be gradually improved," said Tirta on Tuesday.

Tirta added that the weak economic growth in the first quarter was especially caused by weak performance of several domestic demand components such as non-profit agency consumption, government consumption and investment in building sector.

INDRI MAULIDAR | TRI ARTINING PUTRI