RI`s economy projected to grow by 5.5 pct next year: Economic committee

RI`s economy projected to grow by 5.5 pct next year: Economic committee

Chairul Tandjung (ANTARA)

"Indonesia`s economic growth next year will not be much different from the trend seen at the end of 2013. The economy will grow by an average of 5.5 percent throughout 2014," KEN Chairman Chairul Tanjung said/
Jakarta (ANTARA News) - The National Economic Committee (KEN) has predicted that the Indonesian economys growth rate will slip to 5.5 percent next year, lower than the projected 5.7 percent growth rate expected this year.

"Indonesias economic growth next year will not be much different from the trend seen at the end of 2013. The economy will grow by an average of 5.5 percent throughout 2014," KEN Chairman Chairul Tanjung said at a seminar on Tuesday.

The projected 5.5 percent growth rate is a pessimistic scenario, which is most likely to happen, he added.

The committee itself had projected that national economic growth would range between 5.5 and 6 percent next year, Chairul said.

"We predict that economic growth will come close to the lower limit of the growth range," he stated.

Chairul also predicted that the global economy will be relatively stable and might slightly strengthen next year. Domestically, the inflation rate could be kept in check.

"This does not mean that the Indonesian economy will automatically grow at a faster pace in 2014 than in 2013," he said.

Despite being stable, the global economy would still not be strong enough to raise Indonesias exports significantly, he said.

Negative sentiment toward the countrys current account deficit would still pressure the Indonesian economy, Chairul pointed out.

"This means that there will be a greater chance for our monetary authorities implementing a tighter monetary policy. BIs rates will not be raised. The government is expected to adjust its policies in keeping with Bank Indonesias policies without having to aggressively boost economic growth," he said. (*)

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