Indonesia`s deputy finance minister Anny Ratnawati said here on Thursday the government kept monitoring the crisis with regard to minimizing its impact on the domestic economy.
"For Indonesia the impact will almost be the same as that from Greece. It will possibly affect exports as demand and also prices drop and also banking. But according to reports yesterday our banking industry is good because our non-performing loan is low and therefore the impact on the sector will not be that far," she said to newsmen.
She said what was needed to be watched was capital inflow. "Under current situation in Europe and the US capital will likely flow into the emerging market although it will not be as big as this year`s. The implication is the domestic economy must be ready to make it go to the real sector," she said.
She said Indonesia also had to anticipate the IMF prediction that in 2012 the economy would slow down by 0.5 percent.
"With regard to global economy the IMF has already given a prediction that it may be corrected by almost 0.5 percent. In 2013 the economic slowdown may possibly still continue meaning we must anticipate that it may be protracted. We must anticipate it with regard to preparing the domestic economy in 2012-2013," she said.
"Therefore we have prepared mitigation efforts in the 2012 budget such as preparing a lot of fiscal, food and other reserves. We will later review it to see whether it is enough not not. In 2013 we will check again the development in 2012," she said.
Anny said the government has taken several measures to mitigate the impact of the crisis so that it would not affect the country`s economy deeply.
"Until now our economy is still able to weather the crisis so long as we can maintain domestic consumption through people`s welfare programs and by keeping the inflation low. The government`s spending must also be made better to boost the economy. This is important to offset a slowdown in exports in case that happens so that totally the growth will continue to reach 6.7 percent," she said.
Anny said all parties must be optimistic that they could curb the impact of the crisis by preparing various measures and strategies.
(T.P008/H-YH/HAJM)
Editor: Priyambodo RH
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