Government Still Optimistic of Achieving 5.4 Percent Economic Growth

Finance Minister Sri Mulyani Indrawati discusses the draft of state budget for 2018 together with members of the House of Representatives.

Jakarta, MINA – The Indonesian government remains optimistic that the economic growth target set at 5.4 percent would be realized despite domestic and global economic challenges next year, Finance Minister Sri Mulyani was quited by Antara News as saying.

“We still believe that 5.4 percent is achievable, but it needs additional hard work,” she stated while addressing members of the Commission XI during a hearing discussing the Draft State Budget 2018, here, Monday.

To achieve the target, the consumption rate should grow above five percent. Next year, the consumption rate is expected to grow 5.1 percent.

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The investment rate is expected to reach 6.3 percent next year.

Industrial credit

The biggest challenge next year will be industrial credit growth in the banking sector that has to grow strongly to support domestic economic growth, she explained.

Banking credits this year should increase to Rp370 trillion as compared to last year to reach the economic growth of 5.2 percent.

Next year, banking credits must increase to Rp489 trillion to achieve an economic growth of 5.4 percent.

“With regard to banking, investment credits must grow higher, from 11-13 percent this year to 13-15 percent next year,” Mulyani remarked.

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She also expects optimal spending by state-owned companies to reach the economic growth target.

In terms of the capital market, she expressed hope that investment will contribute Rp855 trillion.

The government is also optimistic of receiving Rp799 trillion from domestic and foreign investment. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)