Agus predicted the country`s economic growth would be close to 5.8 percent in 2014 with expected improvement in the global economy and consolidation of the domestic economy toward greater balance.
Jakarta (ANTARA News) - Bank Indonesia Governor Agus Martowardojo said the country is expected to chalk up a stronger economic growth in 2014 to follow the global trend.

Agus predicted the countrys economic growth would be close to 5.8 percent in 2014 with expected improvement in the global economy and consolidation of the domestic economy toward greater balance.

In 2013, the countrys economy was estimated to grow 5.7 percent, slowing down from a growth of 6.2 percent in the previous year, he said.

"In 2014, the economic growth is expected to come close to the lower limit of Bank Indonesias earlier target of 5.8-6.2 percent," he said here on Thursday.

He said in 2013, the countrys economy was confronted with heavy challenges as a result of the global economic slowdown.

Advanced economies were beset by crisis and the emerging markets including Indonesia suffered the impact, he said, pointing out the commodity prices fell.

In addition, uncertainties in the global financial condition was worse with the negative sentiment brought about by the Feds plan to trim its massive financial stimulus.

The latest development showed improvement in the global economic condition led by the United States and Japan, and indications of recovery in Europe, China and India, Agus noted.

"The improving trend could continue through 2014 to sustain the Indonesian economy in trade and financial sectors," he said.

The countrys economic growth which is biased toward the lower limit of the 5.8-6.2 percent range does not mean ruling out a reverse to the 6 percent range," he said.

He attributed the lower growth record in 2013 to poorer performance in exports and investment leaving the household consumption the only driver of growth.

He said the countrys economic slowdown in 2013 was in line with the stabilization policy of the government and Bank Indonesia to lead the economy toward a healthier more balanced condition.

"All in all, a measured stabilization policy could be offset with economic growth in 2013, which was relatively high compared with economic growth recorded by other countries," he said.(*)

Editor: Heru Purwanto
Copyright © ANTARA 2014