Compared to other countries the country`s economic growth is still good."Jakarta (ANTARA News) - Finance minister Chatib Basri said it was possible the country`s economic growth target set at 6.3 percent this year would not be achieved because realization until the first semester was below six percent.
"There is a risk of the economy to grow below 6.3 percent because realization of growth in the first semester was only around 5.9 percent," he said here on Friday.
Chatib said under the condition the government had to take extra efforts so that the economy could grow above six percent and not far below the target set in the revised budget.
"The finance ministry is estimating at around 6.0 or 6.1 percent. We must take extra efforts in the second semester but even with the extra efforts it would be difficult to achieve the 6.3 percent target," he said.
Chatib said among the efforts to take was increasing supply of foods and food products because the commodities were one of the contributors to the July inflation that was recorded at 3.29 percent.
Another effort was maintaining the rate of inflation in the next five months so that the people`s buying power would not be eroded and household consumption remained stable, he said that this was possible because the effect of fuel price hike in June would vanish after August.
"Household consumption would be stable in September so that I hope the economic growth later would not rely on investment but household consumption," he said.
He said the government would also accelerate budget spending by cutting the process of preparing disbursement documents to help contribute to growth.
"Yesterday we already paid the 13th salary and this would boost government spending in the second semester and consumption. I have also presented simplification of procedures," he said.
Indonesia`s economic growth was recorded at 5.81 percent in the second quarter year-on-year and so cumulatively the growth was recorded at 5.92 percent in the first semester, according to the National Bureau of Statistics (BPS).
The BPS said household consumption grew 5.06 percent and government consumption rose 2.13 percent.
Gross fixed capital formation meanwhile was recorded at 4.67 percent, while exports at 4.78 percent and imports 0.62 percent.
BPS chief Suryamin said although the country`s economic growth was recorded at below six percent the 5.92 figure was still better than that in advanced countries which are now still suffering an economic slowdown.
"Compared to other countries the country`s economic growth is still good. With the data we hope the government could prepare policies for the next two quarters," he said.
The World Bank representative to Indonesia, Stefan Koeberle, meanwhile said that Indonesia still has the potential to increase its economic growth by minimizing potential risks.
The World Bank has already projected the economic slowdown in Indonesia and revised its projection to 5.9 percent and in view of that the Indonesian government must respond it by developing policies that would boost sustainable growth.
"Right now the Indonesian government has already done what is needed to maintain the growth figure for the future but continuing pressures must be controlled carefully," he said.
(Reporting by Satyagraha/H-YH/B003)
Editor: Priyambodo RH
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