Government to Keep Momentum of Economic Growth: Minister

Jakarta, MINA — Finance Minister Sri Mulyani said the government will keep the momentum of economic growth in the second half of 2018 to follow the global change in capital flows, Antara News reported.

“We will continue to focus on maintaining the momentum of growth in the second half of 2018 amid the present global dynamics,” the Minister said addressing a ceremony on Indonesia Economic Outlook Forum here on Monday.

She said the government and related authorities have taken a series of policies to back up efforts to maintain the momentum in the second half of 2018.

She cited the interest rate has been raised, and investment has been boosted through fiscal policy.

Also Read: Indonesia Forex Reserves Up US$500 Million in January to USD 116.9 Billion

“We have adopted the policy not only to maintain the momentum but also to reduce our vulnerability,” she said, adding the policy is to help ensure that the economic growth target of 5.3 percent could be brought to reality in 2019.

The economic growth drivers expected in 2019 include consumption growth of 5.1 percent, investment growth of 7 percent, export growth of 6.3 percent and import growth of 7.1 percent.

Meanwhile, the agricultural sector is expected to grow close to 4 percent and construction sector 6.6 percent.

The manufacturing sector will be given special addressing that it could grow more than 5 percent in 2019. If the manufacturing sector remains in the doldrums the program to create more jobs and increase tax revenue would not be up to expectation, she said.

Also Read: Indonesia's Economic Growth Projected at 5.3 Percent in 2018: World Bank

Main priority of development in the manufacturing sector

Addressing the same ceremony, Industry Minister Airlangga Hartarto said the main priority of development in the manufacturing sector include footwear, food and beverage, chemical, textile and electronics industries.

The five industries represent 60 percent of the country`s manufacturing sector and could contribute 65 percent of the country`s export and job availability, Airlangga said.

The country`s exports of goods in the first half of 2018 were valued around US$88.2 billion, but imports were also high at US$85.6 billion.

Sri Mulyani said import control strategy is necessary as there is still risk of higher capital outflow with the U.S. Central Bank planning further increase in its fund rate. (T/RS5/RS1)

Also Read: BI Forecasts First-Quarter Growth at 5 Percent

Mi’raj Islamic News Agency (MINA)