The central banks deputy governor Hendar remarked here on Thursday that Indonesias economy would continue to remain favorable in the future following the governments bold decision to increase the price of subsidized fuel oils.
He, however, pointed out that it would all still be determined by the reallocation of fuel subsidy funds.
Hendar expressed hope that the global economy in 2015 would be better than this year, despite several lingering challenges.
"Under the current circumstances, we can assure that the countrys economy would grow around 5.4 percent in 2014," he affirmed.
The government has set a growth target of 5.8 percent in the 2015 budget, which is above BIs prediction.
Zulkifli Zaini, the general chairman of the Indonesian Bankers Association, has noted that in order to achieve 5.8 percent growth minimally, a credit growth of 17.4 percent, or three times the economic growth, would be needed.
The Financial Service Authority (OJK) has projected banking credit growth of 15 to 17 percent for 2015.
A. Prasentiantoko, the chief economist of state-owned Bank Tabungan Negara (BTN), stated that Indonesia could achieve higher growth if the current account deficit could be better managed to stay under three percent.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2014
