"Some have predicted that our economy will slow down. We consider the input but it must not make us afraid. We will always maintain the growth momentum so it will not weaken," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Wednesday.
To achieve the economic growth target of 6.5 percent for this year, the government would continue to maintain the people`s purchasing power by supplying adequate quantities of goods, he said.
"The important thing is that we must maintain the people`s purchasing power to enable them to keep buying goods, while at the same time keeping inflation in check. Supplies must be adequate to make prices stable," he said.
Apart from that, he said to maintain the economic growth momentum domestic industries must keep operating by improving their management systems.
The measure was necessary to anticipate the possibility of the global crisis affecting China which is the main market for Indonesian commodities, he said.
"It is likely exports will drop due to the slow growth of the European economy. If it affects China and India our exports to the countries will be disrupted. Therefore, production machines must not cease operations while on the other hand, we must push the domestic market," he aid.
He reiterated that fluctuations in share prices at the capital market and the rupiah`s depreciation against the US dollar in recent weeks were global phenomena instead of being caused by problematic Indonesian economic fundamentals.
"There is no need to panick. Fluctuations are something normal because they are part of the global phenomena instead of being the typical characteristics of the Indonesian capital market. They have nothing to do with fundamentals," he said.
He said the government and Bank Indonesia (BI/the central bank) had prepared a number of anticipatory steps to maintain the stability of the Indonesian economy, including stabilizing the market for state debt securities. (*)
Editor: Kunto Wibisono
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