Minister Admits Difficult to Achieve Economic Growth of 5.4 Percent

Coordinating Minister for Economic Affairs Darmin Nasution admitted that it would be difficult to achieve the projected economic growth target of 5.4 percent amid the current global uncertainty. (Antara photo)

Jakarta, MINA (– Coordinating Minister for Economic Affairs Darmin Nasution admitted that it would be difficult to achieve the projected economic growth target of 5.4 percent amid the current global uncertainty, Antara News reported.

“We have targeted a 5.4 percent growth, but a tough struggle would be required. It could lower to 5.3 percent,” Nasution stated here on Friday.

One factor that hindered economic growth in 2018 is the sluggish international trade, with declining exports and imports.

“International trade is sluggish that would be followed by (slow) economic growth,” he noted.

However, he made assurance that the government will continue to take necessary efforts to boost exports by improving the ease of doing business through the implementation of the online single submission (OSS) system.

The OSS system is expected to encourage investors to start their business in the export-based industry and export substitution-based industry.

In addition, the government has attempted to cut the imports of oil and gas, especially diesel oil, which currently contributed to the trade balance deficit, through the B20 biodiesel requirement.

“We have to face it. We know the problem and what should be done,” Nasution noted.

Would be in range of 5.14 to 5.21 pct

Earlier on Thursday, Finance Minister Sri Mulyani Indrawati had projected that economic growth in 2018 would lie in the range of 5.14 to 5.21 percent, as global uncertainty has affected developing economies.

The projection has taken into account the economic growth in the first semester of the year at 5.17 percent, as well as 5.13-5.25 percent of growth projection in the third quarter, and 5.1-5.23 percent of projection in the fourth quarter of 2018.

“Our projection for the year is in the range of 5.14 to 5.21 percent,” Indrawati noted during a meeting with Commission XI of the House of Representatives.

However, she remarked that the growth projection could be missed due to the downside risks, including the drop in imports, following the rupiah`s depreciation against the US dollar.

“The downside risks is the possibility for the growth to miss its target to 15.5 percent because of declining imports due to the rupiah`s depreciation. Investment and consumption would be affected. If that occurs, the economic growth would be lower to 5.15 percent,” she added. (T/RS5/RS1)

Mi’raj Islamic News Agency (MINA)