"I believe it will grow 5.1-5.2 percent. The growth must be above 5 percent," the minister said.
Jakarta (ANTARA News) - Finance Minister Bambang Brodjonegoro believes the Indonesian economy will expand 5.1-5.2 percent this year, or less than the previous projection of 5.3 percent.

"I believe it will grow 5.1-5.2 percent. The growth must be above 5 percent," he said after a working meeting with the Budget Board of the House of Representatives (DPR) here on Monday, he said

The first-quarter economic growth which reached 4.92 percent fell short of expectation, yet the national economy still has a chance to perform better in the remaining three quarters, he said.

Household consumption and investment which did not significantly contribute to the first-quarter growth will grow as expected in the next quarters, along with the disbursement of civil servants 13th salaries, workers holiday allowances and expedited realization of the governments capital expenditures, he said.

"Household consumption and investment must grow above 5 percent and 6 percent respectively because both are the source of growth. We cannot rely on exports and imports. Hopefully, they will improve later this year," he said.

Household consumption grew only 4.97 percent and investment increased 5.57 percent in the first quarter of 2015 as the public tended to hold spending and the realization of capital expenditure for infrastructure development did not run as quickly as expected.

At a meeting with the government earlier in the day, some members of the House Commission XI questioned the assumed economic growth of 5.3 percent in the draft revision of the 2016 state budget which they described as too optimistic. The assumed economic growth which is the same as the 2016 state budget is not realistic in view of the latest economic condition, they said.

Given the current global economic slowdown, the national economic growth is expected to stay below 5.3 percent. In fact, some multilateral institutions such as the World Bank, the International Monetary Fund (IMF) and the Asian Development Bank (ADB) have projected the national economy will grow by 4.9-5.2 percent.

Bank Indonesia (BI) has predicted the national economy will stay within the lower limit of the central banks forecast of 5.0-5.2 percent.

BI Governor Agus Martowardojo said the global economic downturn will continue to slow down the national economic growth due to low demand for Indonesian exports, leading to the weakening performance of the countrys exports. (*)

Editor: Heru Purwanto
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