"We hope household consumption and investment will be able to rescue the Indonesian economy in the future," Finance Minister Agus Martowardojo said at a working meeting with the House of Representatives (DPR)`s Budgetary Body at the parliament building here on Wednesday night.
He said household consumption was projected to grow by 0.2 percent to 4.9 percent in 2012 from 4.9 percent in 2011.
"Likewise investment is also expected to contribute more to the national economy the more so because Indonesia`s debt rating has been increased to an investment grade when the debt ratings of other countries decline," he said.
The minister predicted investment would grow 10.9 percent in 2012 compared to 8.8 percent last year.
He said the government also had revised upward the assumed inflation rate in the revised 2012 state budget to 7 percent from 5.3 percent.
"The assumed inflation rate emerges as a result of a plan to raise the price of subsidized fuel oils in April," he said.
The fuel oil price must be raised to maintain the credibility of the state budget in response to spiraling global crude price, he said.
He said the rupiah`s assumed exchange rate against the dollar had been lowered to Rp9,000 per dollar from Rp8,800 per dollar in the 2012 state budget.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
