"Perhaps the government spending so far has not been optimum."Jakarta (ANTARA News) - The government hopes that the economy will continue to grow in order to meet the growth target set at 6.5 percent in the 2012 budget, said Chief Economic Minister Hatta Rajasa.
"I myself am not satisfied (with the present achievement), as I hope it will reach 6.5 percent. However, acceleration usually occurs in the next quarter," he stated here on Tuesday in response to the National Statistics Agency`s report of first-quarter growth of only 6.3 percent issued on Monday.
According to Hatta, the country`s economy has grown only 6.3 percent because of the overall weakening of the world economy and the impact of the European economic crisis.
"The economies of Europe, China and India are also slowing down," he explained.
Hatta was optimistic that Indonesia`s economy would improve as long as the government was able to maintain public buying power and maximise government spending.
"Perhaps the government spending so far has not been optimum. We must also maintain public buying power so that consumption is maintained and people keep buying to push growth," he remarked.
While Finance Minister Agus Martowardojo admitted that the growth figure did not meet expectations, he maintained that investments are still performing well.
"That is indeed below the target, exports and imports are lower, but investment is high and good. That is what makes us optimistic that Indonesia`s economy will grow more," he affirmed.
According to him, Indonesia would achieve the 6.5-percent growth target because the government would boost budget spending and prepare a fiscal stimulus for infrastructure development.
"The 2012 economy will still be supported by a stimulus available in the revised 2012 budget for infrastructure. We will produce it," he added.
(Uu.H-YH/INE/KR-BSR/F001)
Editor: Priyambodo RH
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