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.
Therefore, Finance Minister Bambang Brodjonegoro is optimistic that the
country will be able to meet its economic projection ranging between
5.5 percent and 5.8 percent in 2015. This is because the government has
ample fiscal room to support its investment projects.
"I
have an economic target that is between 5.5 percent and 5.8 percent. I
predict it will touch the upper rate limit," the finance minister said
on Monday (Jan.5).
He explained that the government has a
fiscal room of Rp230 trillion, which will be allocated to the Ministry
of Public Works, Ministry of Transportation, and Ministry of Agriculture
to support investment activities.
President Joko Widodo has also expressed optimism over Indonesia's
economic growth in 2015 because of the fiscal room and flexibility
available in the national budget.
"The fiscal room in the national budget is good and it will boost our economic growth in 2015," he stated last week.
Jokowi, as the President is popularly called, has been optimistic about
the country's future economic growth as the 2015 revised budget will
focus on several important infrastructure projects.
President Jokowi had remarked that infrastructure development projects were vital to the economic growth of a country.
Therefore,
according to Finance Minister Bambang Brodjonegoro, the government,
through the Ministry of Public Works and Ministry of Transportation,
will build better infrastructure. The agriculture ministry will develop
irrigation facilities.
"The
ministry of public works will build basic infrastructure while the
ministry of transportation will develop ports and railways. The
agriculture ministry will provide fertilizers, seeds, agricultural
machine tools, and improve the irrigation system," the minister noted.
Bambang
Brodjonegoro said the government will continue to widen the fiscal room
by optimizing revenues and increasing the quality of state spending.
Besides
showing optimism about budgetary aspects, the government is also
convinced that investments will support economic growth as it will
improve bureaucratic procedures for the issuance of business licenses.
It has set up a one-stop service facility at the Capital Investment
Coordinating Board (BKPM).
"The
Mechanism of One Stop Service in the Front Office of BKPM will become
operational in January 2015. With improved procedures, both domestic and
foreign investors will be attracted. So, there will be no processes
that will take longer time. This will boost economic growth," the
minister said.
Brodjonegoro added that the government has also pinned hopes on
domestic consumption to support the country's economic growth because
the export sector is still believed to be facing gloomy conditions and
cannot contribute significantly to the economy in 2015.
"To
keep opportunities open, we should also maintain the people's
purchasing power, because our exports cannot be expected to support the
country's economic growth. We do not know about it as it is also related
to the Chinese economy. But we will do our best to become better this
year than the previous year," the minister remarked.
A banker, Sunarso, also expressed optimism that economic conditions will be better this year.
"Indonesia's economic growth in 2015 will not be as bad as that in
2014. I see that Indonesia's economy in 2015 will improve further,"
Sunarso said last Wednesday.
He pointed out that the government's focus on infrastructure
development and the guarantee of legal certainties will attract
businesses to invest their capital in the country. This is regardless of
the fact that until now foreign investments coming to Indonesia were
mostly confined to portfolio investments.
"In the long run, the government must design an agriculture-based
economic structure. Actually, this is not new as it had been tried in
the past," noted Sunarso who is a member of the Alumni Forum of the
Agriculture Institute of Bogor (IPB).
The agriculture industry has proven its capability in safeguarding
Indonesia's trade balance in any crisis. In order to develop an
agriculture-based economy, the Indonesian government can start with a
correct land division for agriculture, before accelerating its
infrastructure development, financial support for agriculture, and
reducing the import of agriculture products.
"In addition, giving guidance to farmers and their growth should not be forgotten," he added.
In the meantime, Franciscus Welirang, the chairman of the Food
Resilience Permanent Committee of the Indonesian Chamber of Commerce and
Industry (Kadin), is also convinced that Indonesia will create more
business certainties in 2015. Thus, Indonesia's economic growth is
expected to reach 5 percent, or even higher.
He said the business world is convinced that the government's move to
reduce fuel oil subsidies sometime ago will improve the country's
economic conditions that are better than those in 2014. Therefore,
businesses will begin investing in 2015.
Indonesia, he remarked, is still a hope for foreign investors. This has
been proven by a number of Japanese investors who have made plans to
make investments in wheat business in Indonesia.
"Even though Japan and other European countries are still facing
recession, they still have hopes in East Asian nations, including
Indonesia," he added.
Earlier, Megawati Institute's Executive Director Arief Budiman remarked
that Indonesia's economic growth can reach 5.8 percent in 2015.
"The main factors that will boost Indonesia's economy in 2015 are
investments and private consumption. After all, the government will soon
realize its infrastructure projects in 2015," he asserted.***3***
(T.A014/INE/B003)
EDITED BY INE
(T.A014/B/BESSR/Bustanuddin) 06-01-2015 19:21:3 |
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