"Indonesia`s current economic growth rate may increase. We saw the world economic growth rate slow down from 3.2 percent to 3.1 percent this year. However, during the board of governors` meeting, the global economy was projected to grow at 3.7 percent and that will have a positive effect on our economic growth as well," he said, after President Susilo Bambang Yudhoyono`s state-of-the-nation address at the parliament building, on the eve of the August 17 commemoration of Indonesia`s Independence Day.
However, Agus continued, Indonesian exports are unlikely to improve this year, with demand for eight primary commodities expected to continue declining.
"The central and regional governments must discuss the export situation with Bank Indonesia," he said.
According to Agus, declining exports will negatively affect the country`s balance of trade, which needs structural improvements, particularly in the area of capital and financial transactions.
"This problem must be addressed if we want to revive our exports. Current account deficit in the second quarter will affect the economy," he said.
Earlier in the day, the President said in his address that the Indonesian economy grew at an average of 5.9 percent annually from 2009 through June 2013, which was higher than the average economic growth rate seen in the previous five-year period.
"This is the highest growth seen since the economic crisis 15 years ago," he noted.
The head of state revealed that the government still expected the national economy to grow by 6.4 percent in 2014
Citing the 2014 state budget draft, in which inflation has been assumed to be around 4.5 percent and rupiah exchange rate estimated at Rp9,750 against the US dollar, he said the government still expected the national economy to grow by 6.4 percent next year.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
