EXPERTS EXPECT INDONESIAN ECONOMIC GROWTH TO CONTINUE

by Andi Abdussalam

Jakarta, Feb. 9 (Antara) - Indonesia has continued to record an increasing economic growth over the last three years and it is being hoped that the country will maintain this trend.          To that end, the Indonesian government should continue to explore "driving machines" in order to boost the country's economic growth even further, such as offering attractive investment and tourism opportunities, experts have stated.          According to economist Professor Dr. Elfindri of the Padang-based University of Andalas, although the Indonesian economy has improved, yet the growth is slightly lesser compared with that during the administration of former president Soesilo Bambang Yudhoyono.          Elfindri argued that among other factors, Indonesia's economic growth was triggered by the end of economic recession in Europe and the improving economy of the United States (US).          "The end of economic recession in the US as well as Indonesia also encouraged economic growth in China," Elfindri said, when contacted by Antara from Pekanbaru on Friday.          He made the statement in response to a query about Indonesia's economic growth trend as showed by the Central Bureau of Statistics (BPS), which stated that the country recorded an economic growth of 4.88 per cent in 2015, which grew to 5.03 per cent in 2016. In 2017, the economy grew by 5.07 per cent, the highest growth since 2014.

TWO TASK FORCE TEAMS TO BE EMPOWERED TO DRIVE GROWTH

By Andi Abdussalam

Jakarta, Jan 16 (Antara) - The government is resolved to achieve an economic growth of some 5.4 percent this year by empowering two task force teams, despite some being skeptical about the target being realized.         Head of the National Development Planning Board Bambang Brodjonegoro highlighted the need for hard work to attain the economic growth target of 5.4 percent set for this year.       Hard work is needed, as the country's economic growth still relies mainly on the consumption sector, Brodjonegoro, who is also the national development planning minister, had noted in Jakarta on Monday (Jan 8).         To this end, the government will increase synergy between the Economic Policy Package Task Force and the Task Force on Acceleration of Doing Business to boost investment and the economy.         "It is necessary to ensure continuity of work between the two task force teams, so that increased investment and ease of doing business in Indonesia can be realized effectively," Coordinating Minister for Economic Affairs Darmin Nasution noted as he led a coordination meeting in Jakarta on Wednesday (Jan 10).

GOVERNMENT MUST GO ALL OUT TO ACHIEVE GROWTH TARGET

by Andi Abdussalam

Jakarta, Aug 10 (Antara) - The government must work harder to spur the country's economic activities in order to achieve its economic growth target set for this year at 5.2 percent.          The Central Bureau of Statistics (BPS) has revealed that economic growth in the second quarter of 2017 was recorded at 5.01 percent, which is relatively stagnant as compared to that in the first quarter of 2017.          "The 5.2 percent growth target is difficult to achieve, considering the economic growth in the second quarter,¿ Economist Abra Talattov of the Institute for Development of Economics and Finance (Indef) said in a statement on Monday (Aug 7) based on the BPS data.           Hence, the Indonesian central bank (Bank Indonesia/BI) warned of potential risk that could hinder the prospect of economic growth for the second semester of 2017, especially with domestic demand that is yet to recover.          "This is related to domestic demand that is yet to be strengthened with the continued reconciliation process of corporate and banking," BI's executive director for communication department Agusman said in a statement.          According to BI, the economic growth in the second quarter of 2017 at 5.01 percent (year on year) has reflected a continued process of economic recovery but was still below expectation.

HIGHER GROWTH TARGET SET IN REVISED BUDGET REALISTIC

by Andi Abdussalam

Jakarta, June 5 (Antara) - Increasing export performance and investment coupled with the optimism demonstrated by the banking sector and corporations will help improve economic activities and boost growth this year.          The improving conditions are believed to be positive factors that will drive up economic growth to exceed the target set at 5.1 percent in the 2017 State Budget (APBN). Thus, it is reasonable for the 2017 Revised State Budget (APBNP) to set a higher growth target.          According to Agus Martowardojo, the governor of Bank Indonesia (BI/the central bank), an increase by 0.2 percent in the economic growth, set at 5.1 percent in the APBN, to 5.3 percent in the APBNP is realistic and logical.          Finance Minister Sri Mulyani has said the economic growth this year can exceed the target of 5.1 percent set in the APBN. Positive economic conditions can galvanize the growth in 2017 to reach 5.3 percent.          The finance minister indicated several factors raising optimism that the economy this year will grow better than the previous prediction. She, among others, pointed out better export performance.

GOVT MIXES OPTIMISM WITH PRUDENCE ON ISSUE OF GROWTH

By Andi Abdussalam

Jakarta, Nov 24 (Antara) - The government is mixing optimism with prudence in forecasting and assuming the rate of economic growth in the state budget for 2017, which is lower than what many institutions predicted.         According to Finance Minister Sri Mulyani, as quoted on the Finance Ministry's website http://www.kemenkeu.go.id, on Wednesday, the government has assumed the economic growth for 2017 at 5.1 percent.         The government's prediction of 5.1 percent growth reflects a balance between optimism and pragmatic understanding. "There is optimism because we are convinced we will be able to maintain the momentum. We balanced it with some prudence because there are external or even internal challenges that we would have to face," Finance Minister Sri Mulayani Indrawati said while addressing a seminar on Indonesia Economic Outlook 2017 in Jakarta on Wednesday.        Moreover, household consumption is expected to grow by 5 percent while government expenditure is predicted to remain stable around 4.8 percent. Besides, investment by the private sector and the capital market is forecast to be better than last year.

LAWMAKERS GIVE MIXED REACTIONS TO ECONOMIC GROWTH TARGET

By Andi Abdussalam

Jakarta, Aug 17 (Antara) - Lawmakers have given different reactions to the economic growth target of 5.3 percent set by the government in the Draft 2017 State Budget (RAPBN 2017).          The growth target is being viewed as realistic by a House of Representatives (DPR) member, but other legislators consider it to be too optimistic.           Nurdin Tampubolon of Commission XI on financial affairs of the DPR noted that the economic growth target was quite realistic under the prevailing conditions.      "It is quite good if the target could be achieved amid the global economic slowdown," Nurdin stated when asked to comment on the financial notes given by President Joko Widodo (Jokowi) in a State of the Nation Address at a plenary session in Jakarta on Tuesday.          However, Deputy Chairman of the DPR Fadli Zon believes that the macro assumptions set in the RAPBN 2017 are too optimistic.          "In my view, they are not realistic in terms of both receipt and growth targets," he told the press after the government handed over its notes of the RAPBN 2017 and its financial notes to the DPR.

GOVERNMENT OPTIMISTIC OF ACHIEVING 5.1 PERCENT GROWTH

by Andi Abdussalam

Jakarta, June 22 (Antara) - The government and House of Representatives' Commission XI on financial affairs have agreed to revise down the nation's economic growth target due to the global economic slowdown that continues to affect several nations' economies.         The government had set the economic growth target at 5.3 percent in the 2016 State Budget, however, only 4.92 percent was recorded in the first quarter of 2016.         In order to meet the set target, the government should achieve a growth of 5.42 percent in the remaining three quarters, which is a challenging task, taking into account the current economic conditions.          Therefore, the government and Commission XI had agreed on June 7 to change the 2016 economic growth target from 5.3 percent to 5.1 percent in the draft 2016 revised budget.      This implies that with the 4.92 percent growth recorded in the first quarter of this year, the government has to achieve an economic growth of 5.16 percent in the remaining three quarters to meet the 5.1 percent target set in the draft revised state budget this year.         The Indonesian central bank, or Bank Indonesia (BI), has forecast that the country's economy would grow between 4.9 and five percent in the second quarter of this year, or falling slightly short of the target.

GOVERNMENT UPBEAT ABOUT Q2 GROWTH

by Andi Abdussalam

Jakarta, May 17 (Antara) - Despite witnessing low performance in the first quarter, the government is optimistic that the economic growth in the second quarter of this year will be higher.          Moreover, the growth in the first quarter of 2016, recorded at 4.92 percent, was higher than in the same period last year, when it was only 4.71 percent.          Finance Minister Bambang Brodjonegoro has expressed optimism about the expected economic growth in the second quarter, saying it would be better, although the country's economy grew by only 4.92 percent in the first quarter.         Bambang said the economic growth target could still be achieved because growth in the first quarter was better than during the same period last year.         "The basis of growth in quarter one was already higher than last year and the potential for higher growth in the next quarter was bigger," he said when contacted to comment on the issue.          Bambang explained that one of the causes of the lower-than-expected growth in the first quarter was weaker household consumption, owing to lower public demand and purchasing power of the people.          Therefore, the National Development Planning Minister and Head of the National Development Planning Board (Bappenas), Sofyan Djalil, said the government has not yet revised its economic growth target for 2016, set at 5.3 percent.

POLICY PACKAGES EXPECTED TO BOOST GROWTH NEXT YEAR

by Andi Abdussalam

Jakarta, Nov 19 (Antara) - The series of economic policy packages announced by the government since September will start impacting the economy in the fourth quarter of 2015 and boost growth to about six percent next year.          Coordinating Minister for Maritime and Resources Rizal Ramli believes that several instruments in the government's economic policy packages will encourage aggressive economic growth, taking it to six percent in 2016.          The government has, since September, announced six chapters of the economic policy packages and is expected to soon unveil the seventh installment of the package.          "I think that we would be able to grow by six percent in 2016. Our target over the next two years is that our growth should surpass that of India and the Philippines," Rizal stated in a presentation at the Center of Reform on Economics' (CORE's) Economic Outlook 2016, in Jakarta on Wednesday.

BETTER GROWTH FORECAST IN FOURTH QUARTER

by Andi Abdussalam

Jakarta, Nov 6 (Antara)- Indonesia's economy is expected to perform better in the fourth quarter of this year in the wake of the higher expenditure made by the government, the impact of economic policy packages and investment development projects.         The improvement in the economic performance is reflected in the upward trend in growth, recorded at 4.73 percent in the third quarter of this year. In the second quarter, the economic growth had fallen to 4.67 percent from 4.72 percent in the first quarter.         Therefore, there is optimism that the economic growth in the fourth quarter will be better.         Finance Minister Bambang Brodjonegoro has forecast that Indonesia's economic growth in the fourth quarter would reach 4.8 percent. Bank Indonesia (BI, or the central bank) has also made a similar predication.         BI has predicted that the economy will grow by 4.85 percent in the fourth quarter.         The Central Bureau of Statistics (BPS) expects that Indonesia's economic growth in the fourth quarter of this year will be better than in the third quarter when it was recorded at 4.73 percent.         "We hope that the economic growth in the fourth quarter will be higher because the capital expenditure in the third quarter was beyond expectation," BPS Deputy for balance and statistical analysis, Suhariyanto, said on Thursday.

GROWTH TARGET SET IN DRAFT STATE BUDGET NEEDS REVISION

By Andi Abdussalam

Jakarta, Sept 21 (Antara) - In the face of major and complex external challenges next year, the economic growth target set at 5.5 percent in the draft 2016 state budget needs to be revised.          "The government of President Joko Widodo is facing complicated external challenges. After all, he formulated his Nawacita (nine national priority) programs before the external challenges emerge. In the 2016 draft state budget, the growth target is set at 5.5 percent. It is likely to be revised down to 5.2 percent," economist A. Prasetyantoko of the Atma Jaya Catholic University noted on Tuesday, last week.          Prasetyantoko explained that an economic growth target set in range of 4.7-4.9 percent is reasonable amid the sluggish economic conditions.          The economist stated that the external challenges, which had affected the economic growth in 2015 and were forecast to protract until 2016, included the weakening of China's economy that had affected commodity prices; the global economic turmoil; and the Fed's plan to raise its interest rates.         Finance Minister Bambang Brodjonegoro remarked that the economic growth assumption set at 5.5 percent in the 2016 draft state budget could be revised down in keeping with the economic conditions and uncertainties next year as a result of the unfavorable global economy.

ECONOMY EXPECTED TO GROW BETTER IN SECOND SEMESTER OF 2015

By Andi Abdussalam

Jakarta, Aug 12 (Antara) - The Indonesian government hopes that the country's economy would perform better in the second semester of 2015 after registering slower growth in the first semester.          Indonesia's economy grew 4.67 percent in the second quarter of 2015, down from 4.72 percent recorded in the first quarter. Thus, the economy grew only 4.7 percent in the first semester of 2015.         "The economic growth in the second quarter of 2015 was lower than that in the same period last year and the previous quarter of this year, which recorded a growth of 4.72 percent," Head of the Central Bureau of Statistics (BPS) Suryamin remarked during a press conference last week, August 5.         However, the government expects the economy to grow by 5.5 percent in the second half of 2015. To achieve this, it will make optimal efforts, including boosting government spending, to improve economic activities.

BI REVISES GROWTH FOR 2015, SETS NEW ONE FOR 2016

by Andi Abdussalam

Jakarta, May 29 (Antara) -- Bank Indonesia (BI) has estimated Indonesia's economic growth in 2016 to be within the range of 5.4 to 5.8 percent.          This range is similar to its earlier prediction for 2015, which has been revised down to 5.1 percent.          Previously, the central bank set Indonesia's economic growth at a range of 5.4 to 5.8 percent for 2015 but later revised it down to 5.1 percent. It has now predicted growth of 5.4 to 5.8 percent for 2016.          Last week, BI said it would maintain its growth forecast at 5.4 percent but would see later whether it needed to be revised.          "BI is of the view that the country's economic growth this year will at least be at the lower limit of its 5.4 to 5.8 percent prediction. However, the bank will wait and watch whether it needs to review the figures in the second quarter of 2015," BI Governor Agus D. W. Martowardojo stated last week (May 20).         The BI revised down its previous prediction of 5.4 percent (lower limit) to 5.1 percent on Thursday.         "In 2015, Bank Indonesia predicts that Indonesia's economic growth will reach 5.1 percent, which is still better than that in 2014 (5.0 percent)," Martowardojo said here on Thursday.         At the same time, BI also set its projection of economic growth at a range of 5.4 to 5.8 percent year-on-year (yoy) for 2016.

BI CONVINCED ECONOMY WILL GROW BASED ON ITS PREDICTION

By Andi Abdussalam

Jakarta, May 26 (Antara) - Although the economic growth is lower than the first-quarter forecast for 2015, Indonesia's central bank, Bank Indonesia (BI) is convinced that the country's economy will grow based on its estimates this year.          The BI still maintains its projection that the Indonesian economy in 2015 will at least reach the lower limit of its estimate at 5.4 percent.          The BI has projected that the country's economy this year will grow at a rate between 5.4 percent and 5.8 percent. However, the economic growth in the first quarter was recorded at only 4.71 percent.          "BI is of the viewpoint that the country's economic growth this year will at least be at the lower limit of its prediction at 5.4 percent. It will be at the lower limit of its 5.4-5.8 percent predication. However, BI will wait and watch whether it needs to make a review in the second quarter of 2015," BI Governor Agus D.W. Martowardojo remarked last week, (May 20).

ECONOMIC GROWTH TO REBOUND IN SECOND QUARTER

By Andi Abdussalam

Jakarta, May 10 (Antara) - The Indonesian economy grew at a slower pace in the first quarter of 2015 with a growth rate lower than that in the corresponding period in the previous year.          The low global oil prices, declining of exports, weakening of the rupiah and the late disbursement of government budget for development have among other things, been attributed to the slower pace of the economy.          The Young Indonesian Businessmen Association (Hipmi) has attributed the current economic slowdown in the country to slow disbursement of state budget funds for various infrastructure projects.          The economic slowdown indicated by the first-quarter economic growth was inseparable from the weak performance of budget realization at central and regional levels, chairman of the Himpi executive board Bahlil Lahadalia said on Tuesday.          Although Indonesia's economic performance has slowed down over the past few months due to a number of factors, yet the government is convinced the country's economy will grow better in the second quarter of 2015.          In the second semester, the government will begin disbursing funds for infrastructure development. Finance Minister Bambang Brodjonegoro said the absorption of budget for infrastructure had been low because the Revised 2015 State Budget (APBN-P) was endorsed by the House only in February, 2015.

GOVT LOWERS ECONOMIC GROWTH ASSUMPTION

By Andi Abdussalam

Jakarta, Jan 27 (Antara) -- The government has lowered its economic growth assumption from 5.8 percent to 5.7 percent in its revised state budget for 2015 after taking internal and external factors into consideration.          Bank Indonesia (BI), the central bank of the country, has welcomed the move, stating that Indonesian's economic growth assumption, which the House of Representatives (DPR) and the government only recently agreed to bring down to 5.7 percent, reflected the conditions of the global economic slowdown.          The government and Commission XI of the DPR agreed to lower the economic growth assumption from 5.8 percent in the state budget for 2015 to 5.7 percent in the draft of the revised state budget for the year.          "The 5.7 percent growth was decided upon after extra efforts were put in to deliberate over the budget expenditure and quantitative easing in Europe and Japan," Finance Minister Bambang Brodjonegoro explained during a hearing with Commission XI of the DPR on Monday (January 26) night.          This change will be taken to the Budgetary Body of the parliament for further deliberation.

RI PREDICTED TO HAVE BETTER ECONOMIC CONDITIONS IN 2015

By Andi Abdussalam

Jakarta, Jan 6 (Antara) - Many have predicted that Indonesia will have better economic conditions this year as compared to last year.          The national economy in 2015 is believed to have better conditions offering business certainties that will lead to the achievement of a five-percent or higher economic growth, Head of the Permanent Committee for Food Resilience of the Indonesian Chamber of Commerce and Industry (Kadin) Fransiscus Welirang stated.         "Increasingly supportive macroeconomic conditions in 2015 will provide great business certainty and will be conducive to boost the flour industry to grow high or even higher than the national economic growth," he noted on December 30.          He noted that with the decision to reduce fuel subsidy, businesses will become better in 2015, as the economic conditions are expected to be more stable as compared to 2014.          Indonesia's economic performance is predicted to be better this year as the economy is expected to get ample fiscal room for infrastructure development. It will also be supported with domestic consumption, investment, legal certainty, and reduced subsidy.

RI'S ECONOMY EXPECTED TO GROW AT 5.0-5.6 PCT IN 2015

By Andi Abdussalam

Jakarta, Dec 14 (Antara) - Indonesia's economic growth has continued to drop over the past three years from relatively high 6.5 percent in 2011 to only about 5.3 percent this year.          The Indonesian Chamber of Commerce and Industry (Kadin) has predicted economic slowdown would continue to hit the country until 2015.          "The country's economy will not yet fully recover in 2015 on internal and external hurdles," Kadin general chairman Suryo Bambang Sulisto said on Wednesday.          According to various estimates, Indonesia's economic growth next year is estimated to be between 5.0 and 5.6 percent.          Researcher Moekti P Soejachmoem of the Mandiri Institute Research Center predicted that seeing the development of its growth over the past three years, the Indonesian economy would only grow at 5.3 percent next year, below the government's target set in the state budget at 5.8 percent.          In 2013-2014, the country's economic growth had been on the decline  - down from 6.5 percent in 2011, 6.2 percent in 2012  and 5.7 percent in 2013  and an estimated 5.3 percent in 2014.

JOKOWI WARNED OF ECONOMIC "TIME BOMB" THREAT

By Andi Abdussalam
Jakarta, Aug 26 (Antara) - The next government will face various issues in improving people's welfare and in developing the country's economy amid low economic growth and high rates of poverty and unemployment.          "The next government under President-elect Joko Widodo, better known as Jokowi, must take bold steps such as conducting a budget 'revolution', removing economic distortions, and raising economic growth," Thomas Ola Langoday, dean of the Economic Faculty of the Widya Mandira Catholic University (Unwira), East Nusa Tenggara, said on Monday.          He noted that the next government should focus on increasing economic growth to about seven percent in order to prevent the emergence of time bomb threat.          If economic growth remains at only about five percent, as at present, the new government will encounter a vicious circle, which will be difficult to overcome, Thomas Ola Langoday warned.          "It should focus on maintaining annual economic growth at over seven percent," he added.

INDONESIAN SLOW ECONOMIC GROWTH SEEN NOT TOO BAD

By Andi Abdussalam

Jakarta, Aug 14 (Antara) - The slow economic growth in the second quarter of 2014 was seen by the government as "not too bad" and still relevant to the 5.1-5.5 percent target set in the revised 2014 state budget.          "I see that the slow economic growth in the second quarter of this year is not too bad," Firmanzah, Presidential Special Staff for Economic and Development Affairs, said referring to the 5.12 percent growth, which was lower than the 5.21 percent in the first quarter.          The Central Bureau of Statistics (BPS) has stated that Indonesia's economic growth in the first quarter of this year stood at 5.21 percent while the second quarter growth was only 5.12 percent.  The economic growth in the second quarter of the previous year was much higher at 5.81 percent.          The government has set an economic growth assumption of 5.5 percent in the revised 2014 State Budget, down from the one set in the previous state budget at 6.0 percent.          Indonesia's realistic economic growth this year is between 5.2 and 5.5 percent, Chief Economic Minister, Chairul Tanjung, said.