New Policy Package to be Released to Drive Economic Growth

TEMPO.CO, Jakarta - The economic growth in the second quarter did not meet the expectation of the government, says Coordinating Minister for Economic Affairs on August 8.

Minister Darmin Nasution's statement was the response to the data released by the Central Statistics Agency (BPS) on this year’s second quarter economic growth of 5.01 percent. It is slightly lower compared to the previous year of 5.18 percent growth.

Read: Govt to Issue 16th Economic Policy in Three Weeks

This shows the economic stagnation during the second quarter, considering that the first quarter also recorded a 5.01 percent growth. The government intended to gain a 5.2 percent economic growth at the 2017 revised state budget (APBNP); a revision from the 2016's target of 5.1 percent.

Minister Darmin argues that Indonesia’s stagnant economic growth was caused by the small government consumption figures added with the slow implementation of investments. However, Indonesia’s consumption figures, and import and export rate showed positive signs.

The government plans to issue the 16th economic policy package within this week to push the country’s economic growth in the remaining time. It will focus on accelerating investment implementations by fixing existing problems regarding permits.

ISTMAN MP