"The economic growth in 2016 is projected at five percent, below the assumption of the revised state budget, but relatively better than growth in 2015 at 4.8 percent," Sri Mulyani said.
Jakarta (ANTARA News) - Indonesias economy grew at an estimated five percent in 2016, higher than 4.8 percent growth in 2015, Finance Minister Sri Mulyani Indrawati said here on Tuesday.

"The economic growth in 2016 is projected at five percent, below the assumption of the revised state budget, but relatively better than growth in 2015 at 4.8 percent," Sri Mulyani said.

The countrys economic performance was better than that of other G20 nations and developing countries, which were affected by global economic slowdown, she claimed.

Economic growth during the fourth quarter of 2016 is projected at 4.7 percent, supported by improvement in household consumption and investment.

"Household consumption and investment has encouraged national economic growth. But, government expenditure will be affected due to lower expenditure in central administration due to budget adjustment," the minister stated.

In addition, she said, the national inflation rate was relatively under control during 2016, at 3.02 percent, lower than the assumption in the revised state budget of four percent.

"Inflation rate in 2016 was under control, supported by lower commodity prices and the governments move to maintain production, improving distribution, despite the risk of supply disturbance due to the climate," she said.

Economic stability was also reflected in the stronger rupiah, which was recorded at Rp13,307 against the US dollar, higher than the assumption of Rp13,500 in the revised budget.

"Strong economic fundamentals with various policies including recovery of state budget credibility and implementation of the law on tax amnesty have been factors behind the rupiah strengthening," Sri Mulyani said.

In facing the macroeconomic condition in 2016, the state budget deficit remained under control, at a safe level of 2.46 percent of GDP, she noted.(*)

Editor: Heru Purwanto
Copyright © ANTARA 2017