Indonesia's Economic Growth Estimated at 5.7 Percent

SBY PRESIDENCY

Finance Minister Sri Mulyani Indrawati said that Indonesia’s economic growth in the first quarter of this year was expected to reach 5.7 percent, or at least 5.5 percent based on the 2010 growth target.

"The country’s economic growth in the first quarter of 2010 is expected to reach 5.5 percent to 5.7 percent," the finance minister told House Commission XI on financial affairs at a hearing here on Tuesday.

She said that in the 2010 revised state budget the government had set growth assumption ranges for the first quarter of 2010. In the revised budget, the growth ranges for the private consumption was set at between 3.6 and 4 percent and the government consumption at between 9.7 percent and 9.8 percent.

"For the government consumption, the estimated range is lower than that of the fourth quarter of 2009 which was 17 percent," the minister said.

The range of fixed gross capital investment (PMTB) was set at between 7.1 and 7.2 percent and that of exports, which are expected to sharply increase was estimated at between 21.7 percent and 21.9 percent.

"The assumption for exports increased from 3.7 percent in the fourth quarter of 2009 and that of imports reached 1.6 percent," the minister said.

She said that the conditions could be made thanks to Indonesia’s positive economic stability which was supported by capital inflow, increase in foreign exchange, rupiah appreciation, strengthening of stocks index and positive investors’ perception.

"This is also supported by the inflation rate which until March 2010 only reached 0.99 percent, or 3.34 percent year-on-year and stability of Bank Indonesia’s key rate at 6.5 percent," the finance minister said.

According to the minister, the improvement in the macro assumptions of the country’s economy is also thanks to the improvement of the global economies, which in various Asian, European and American countries were getting better than earlier expected.(KOMPAS)

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