As a developing nation with a strong domestic market and high economic growth, Indonesia holds a special position, compared with other developing countries, Sri Mulyani said.Jakarta (ANTARA News) - Indonesias economic foundation is strong and can weather the negative effects of the US Federal Reserve Banks rate hike, Finance Minister Sri Mulyani said.
As a developing nation with a strong domestic market and high economic growth, Indonesia holds a special position, compared with other developing countries, she said after addressing a session entitled, "Indonesia Economic Outlook 2017" held by the Golkar Party here on Thursday.
"This has given (us) a solid foundation, so Indonesia can be distinguished from other countries in positive terms." she said.
The economic foundation is also supported by fiscal restructuring steps, including the issuance of state bonds worth US$3.5 billion early this year at higher yields than last years, she noted.
In addition, the government is also upbeat about offsetting a budget deficit of 2.5-2.7 percent, reaching an economic growth rate of 5 percent, an increase in foreign exchange reserves, and control of current account and capital accounts this year, she said.
The quality of the countrys economic growth, reflected by an infrastructure expenditure hike, well-guided subsidy, rising budgets for human resource development and poverty eradication has shored up market agents expectations that demand in the domestic economy will continue to grow, she said.
"The government investment is aimed at keeping demand under control. This way, we will continue to have credibility and positive sentiment," she said.
The US Federal Reserve Bank has decided to raise its benchmark rate by 25 basis points to 0.5 percent, from 0.25 percent.
By raising the benchmark rate, the Federal Reserve expects the US economy will expand by up to 2.1 percent in 2017, compared to the target of 1.9 percent for this year.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
