Regarding deficit in the first quarter of 2013, I do not want to make speculations. I am afraid if I speculate it would really become true."
Jakarta (ANTARA News) - Finance Minister Agus Martowardojo said that the national economic growth in 2012 could only reach 6.23 percent because the realization of the government`s capital expenditure was low.

"If the realization of government expenditure was the same as that in the previous year, I think the 6.3 percent target could be achieved," the minister said here on Thursday.

He said that the realization of the government`s capital expenditure in 2011 which reached 83.6 percent was better than the realization of the same expenditure in 2012 which was only 79.6 percent.

The minister said that the government`s capital expenditure for 2012, which reached Rp140.2 trillion was bigger than the one allocated in 2011.

"We are concerned because our absorption of capital expenditure funds only reached 79 percent," he asserted.

But the 6.23 percent economic growth was relatively high compared with those of other advanced and developing nations, he added.

He said that that was a good time for the government to conduct review and to utilize the present good economic growth to narrow the social economic gap among the country`s citizens.

"The 6.23 percent become an input for the government to conduct a review and to further boost and optimize inclusive economic growth," the finance minister said.

In the meantime, chief economic minister Hatta Rajasa said that the country`s economy grew only 6.23 percent falling short of the target of 6.5 percent last year partly caused by large imports of oil fuel.

Increase in imports including oil fuel imports in 2012 while exports contracted had resulted in trade deficit that year, he said.

Indonesia suffered a trade deficit of US$1.33 billion in 2012, the first in many years , caused by shrinking exports with imports surging

The Central Bureau of Statistics said that the country`s exports shrank 4.6 percent and imports rose 9.92 percent in 2012.

Hatta said the government is set to be more careful in managing the oil and gas sector to prevent trade deficit in 2013.

He called for greater efficiency in oil consumption to reduce imports.

He said commodity price fall like crude palm oil, rubber and coal also contributed to failure in reaching the economic target.

Deputy Trade Minister Bayu Krisnamurthi said that the government failure to achieve its economic growth target at between 6.3 and 6.5 percent in 2012 was due to the weakening of the country`s exports.

"The economic growth in 2012 grew only at 6.23 percent because the country`s exports were weakening," he said.

He said that actually Indonesia`s non oil exports balance was surplus by Rp40 trillion, yet its oil and gas imports jumped up to Rp50 trillion.

The deputy minister said that pressures should not therefore continuously be made. After all, the price of crude had exceeded US$110 per barrel. This will put pressures on Indonesia`s trade balance.

He said that the country`s oil and gas trade balance was the only one which was in critical condition. This requires the government to safeguard the energy sources at home which could also contribute income to the state.

"Regarding deficit in the first quarter of 2013, I do not want to make speculations. I am afraid if I speculate it would really become true," he said. (A014)

Editor: Kunto Wibisono
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