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BI Revises Economic Growth

19 June 2015 17:24 WIB

TEMPO.CO, Jakarta - Bank Indonesia has revised its prediction on Indonesia's economic growth this year to 5.0-5.4 percent from the previous 5.4-5.8 percent. BI highlighted two conditions that need special attention, namely decreasing commodity prices, along with decreasing demands from main partner countries, and sluggish state budget disbursement.

"hese two issues must be addressed to achieve an economic growth of 5.4 percent," BI governor Agus Martowardojo said at his office on Friday, June 19, 2015.

Agus said that Indonesia must be wary of economic growth correction for developed countries made by multilateral institutions. Although BI predicted that the economic growth would reach between 5.0-5.4 percent this year, Agus warned that the figure in the second semester could drop to under five percent.

According to Agus, the contribution of this year's Eid al-Fitr to economic growth would be lower compared to last year, as reflected by the low state tax revenue. Agus added that the condition was caused by limited state budget distribution and pressures affecting companies' performance.

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