"A high economic growth is not enough, but it should be qualified and inclusive," Sri Mulyani said.Jakarta (ANTARA News) - Economic growth should help in reducing inequality and poverty, and creating a wider middle-class, Finance Minister Sri Mulyani Indrawati has stressed.
During the past 10 years, Indonesias poverty rate has declined from 16 percent to 10 percent, but it created a wider gap that was shown by increasing Gini Coefficient from 0.38 in 2010 to 0.41 in 2016.
"A high economic growth is not enough, but it should be qualified and inclusive," Sri Mulyani said during a discussion on "Indonesia Economic Outlook 2017" here Thursday.
Various policies and efforts to develop the economy should be able to create a growing middle-class as the key demand booster, amidst the current global economic uncertainty, she said.
With economic growth predicted at 5.1 percent and inflation rate at 4 percent in 2017, the minister believed that Indonesias economy would maintain its good performance.
However, economic growth which is dominated by domestic consumption should be equalized by investment to keep its fiscal balance.
"Consumption driven economy will maintain peoples purchasing power, here, the middle-class plays a bigger role. It should be supported by policy on taxation and wages, to encourage peoples productivity and income," Sri Mulyani said.
Private investment should be encouraged with favorable economic packages, which furthermore, could absorb local workers.(*)
Editor: Heru Purwanto
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