Finance Ministry Confident of 5.4 Percent Growth in 2018

TEMPO.CO, Jakarta - The government is confident the economy will grow 5.4 percent in 2018.

Finance Ministry official Adriyanto said that the target is realistic. “The figure is achievable. Assuming that there is no frontal and massive geopolitical unrest,” he said yesterday in Bogor.

Ardiyanto said that the next year’s economic growth will be affected by this year’s achievements. That includes exports that grew 17 percent in Q3 despite concerns about the U.S. protectionism.

Nonetheless, the government must remain wary of the issue. He reasoned that such a policy may affect China’s economy, one of Indonesia’s main trade partners. He said that it may have an impact on the bilateral trade relations, albeit indirectly.

The economy will also be boosted by investment that grew 7.1 percent as of Q3. Adriyanto said that the government continues to step up investment including through SOE capital expenditure, investment in the capital market and the money market. “We are also hopeful that the recently launched economic packages will boost investment next year,” he said.

The government’s effort to maintain investment is keeping investors confident of the domestic economy. Adriyanto said the government is determined to improve the fundamentals of the economy.

VINDRY FLORENTIN