Indonesia's Economy Safe from 1998 Crisis: Finance Minister  

TEMPO.CO, Jakarta - Finance Minister Bambang Brodjonegoro expressed optimism that Indonesia would not experience another recession similar to 1998 monetary crisis. According to Bambang, the government has stimulated the country’s economy to keep on growing.

“State’s budgetary spending has reached above 40 percent. We have done a lot,” Bambang said at the Senayan Legislative Complex on Thursday, July 23, 2015.

Bambang believes that the government will accelerate the budgetary spending in the second semester to boost investments in Indonesia. By the end of this year, he predicted, the budget absorption would reach 96 percent.

Bank Indonesia Senior Deputy Governor Mirza Adityaswara echoed Bambang’s statement as saying that the current condition was different than that in 1998. According to Mirza, the difference lies on the absence of political crisis, unlike the situation that happened in 1998.

Mirza added that despite the economic slowdown, Indonesia’s current account deficit had been reduced to below 3 percent. In the first quarter of 2015, the country’s current account deficit reached 1.85 percent and 2.3 percent in the second and third quarter. Mirza is optimistic that the figure would not exceed 2.5 percent by the end of this year.

Bank Indonesia Governor Agus Martowardojo said that Indonesia must be wary of extenal factors, such as Fed’s interest rate Hike.

Meanwhile, Agus added, China’s market condition would not have a significant impact on Indonesia’s economy, although it might affect confidences for countries that have relationships with China.

Agus also expressed optimism that the country’s economic growth would reached 5-5.4 percent.

TRI ARTINING PUTRI