"Government needs to implement the MP3EI."Jakarta (ANTARA News) - Standard Chartered economist Fauzi Ichsan said that implementing the master plan for the acceleration and expansion of Indonesia`s economy (MP3EI) can serve as a solution for Indonesia, amid the economic crisis currently occurring in Europe.
"If the growth of the European economy suddenly drops and the world economy weakens, then the government needs to implement the MP3EI as it has been planned," Ichsan stated at the Ministry of Finance office in Jakarta on Monday night.
According to Ichsan, Bank Indonesia (Indonesia`s central bank) will need to stage an intervention in the foreign currency market and increase interest rates if the global crisis impacts the fiscal conditions and Indonesia`s monetary.
He stated that the situation in Europe and the decreasing value of the Indonesian rupiah as well as the Jakarta Composite Index are entirely dependent on the results of the public election in Greece that will occur in mid-June 2012.
Ichsan added that in this scenario, the European growth has weakened by 2-3 percent, while Indonesia`s growth is only slowing down to 5 to 8 percent.
(Uu.AH/INE/KR-BSR/F001)
Editor: Priyambodo RH
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