... Stronger dollar could trigger capital flight from emerging markets which have enjoyed quantitative easing...Jakarta (ANTARA News) - Finance Minister Sri Mulyani warned of global risks that could affect the country's economic condition and efforts to reach the development targets in 2018.
Among the external risks are related to developments in the United States and China, the world largest and second largest economies, the minister said in a working meeting with the Commission XI of the House of Representatives on state budget here on Wednesday.
"We continue to watch the trend of trade especially with the United States which tends to be protective and we also see risk from the trend of rebalancing of the Chinese economy," she said.
Other global risks in 2018 are stagnation in commodity prices, US dollar strengthening , escalation of conflict in the Korean peninsula, Brexit process and terrorist threat, she said.
"Stronger dollar could trigger capital flight from emerging markets which have enjoyed quantitative easing," she said.
Despite the risks ahead, the government will maintain its economic groweth target at v5.4 percent in 2018, she said.
"Indonesian economic condition is expected to improve in 2018. We need a policy to face the global uncertainty and accelerate implementation of program," the minister said.
She said household consumption, investment and exports would be the the economic growth drivers in 2018.
"The growth of the household consumption has to be maintained above 5 percent and for that purpose the buying power of the people has to be strengthened by keeping inflation low," she said.
Consumers would be more confident in shopping if inflayion could be kept low, she added.
She said with the acceleration of growth the economic stability could be maintained despite the global risks.
"We estimate that 5.4 percent is enough to give signal of optimism although we need to be always careful and watchful with the risks ahead," Mulyani said.
Editor: Ade P Marboen
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