2017 Economic Growth Target Must be Realistic: Sri Mulyani

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati said Indonesia’s economic growth target in 2017 must be realistic. According to her, the government must be prudent in setting macro-economic assumption in the draft state budget 2017.

“We will have a closer look in the deliberation in the panja [the House’s working committee] whether [economic growth assumption] of 5.3 percent in the draft state budget 2017 represents a credible projection,” Sri said Tuesday in the meeting at the House’s Budget Council.

Meanwhile, the Governor of Bank Indonesia (BI) Agus Martowardojo said the central bank will make adjustments to macro-economic assumption. BI predicts economic growth of between 5.1 and 5.5 percent in 2017.

According to Agus, the forecast is in line with economic growth assumption in the draft state budget 2017 of 5.3 percent. “However, the figure is lower than our earlier prediction of 5.2 to 5.6 percent,” he said. Correction was made following the global economic slowdown.

Agus, however, is optimistic that Indonesia’s economic outlook will be better in 2017, underpinned by enhanced household consumption and improved investment. “In line with stable purchasing power, improved social security and growing middle class,” he said.

Agus has called on the government to boost investment. According to him, the government must continue to make various attempts to maximize fiscal stimulus including acceleration of infrastructure projects. “The implementation of economic packages must also be accelerated,” he said.

ANGELINA ANJAR SAWITRI