Jakarta (ANTARA News) - Gajadmada University economist Sri Adiningsih said here on Wednesday she believed the Indonesian economy may indeed grow by more than 6.7 percent as assumed in the Draft 2012 State Budget presented by the government on Tuesday.

"We still have the potential to grow by 7.0 to 8.0 percent," she said.

She said the government need not be worried to set the assumed economic growth rate at a higher level, for example, at 7.0 to 8.0 percent because the economy was still far from turning into a bubble.

To achieve higher growth, she said, the government could take steps such as creating a budget that gave a bigger portion for infrastructure development to support industrialization in the country.

"Imagine, with corruption, collusion and nepotism still rife and a lot of budget money being corrupted and infrastructure still far from expectations we can still achieve 6.0 percent growth," she said.

She said it was not difficult to achieve a higher growth because Indonesia has a lot of natural resources while the price of natural resource commodities are good and micro-businesses are growing and public consumption is rising to support the growth.

"Under the conditions we can grow 5.0 to 6.0 percent. But if we could mobilize industrialization, create high added-value industries and reduce budget leakage we could grow 7.0 to 8.0 percent. This is not difficult to achieve," she said.

President Susilo Bambang Yudhoyono has set the country`s economic growth at 6.7 percent for the draft 2012 budget while inflation at 5.3 percent, three-month rate for treasury bill (SPN) at 6.5 percent, rupiah exchange rate at Rp8,800 against the US dollar, crude oil price at US$90 per barrel and oil lifting at 950,000 barrels a day.
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Editor: Aditia Maruli Radja
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