Govt, House agree to lower 2015 economic growth assumption

The baseline of the economic growth in 2015 is predicted to decline due to global economic conditions and the drop in world`s commodity prices.
Jakarta (ANTARA News) - The government and Commission XI of the House of Representatives (DPR) have agreed to lower economic growth assumption from 5.8 percent in the 2015 state budget to 5.7 percent in the draft 2015 revised state budget.

"The 5.7 percent growth is set with an extra effort after considering the budget expenditure and quantitative easing in Europe and Japan," Finance Minister Bambang Brodjonegoro made the explanations in a hearing with Commission XI of the DPR on Monday night.

In the hearing with Commission XI, National Development Planning Minister/Head of the National Development Board Andrinof Chaniato, Bank Indonesia (the centeral bank) Goveronor Agus Martowardojo and Head of the Central Bureau of Statistics (BPS) Suryamin were also present.

Bambang stated that the baseline of the economic growth in 2015 is predicted to decline due to global economic conditions and the drop in worlds commodity prices.

Yet, the government is still doing its best to boost higher economic growth as it still has a fiscal room which will be utilized for infrastructure expenditure and as it still has financial addition as a result of the monetary stimulus by the European Central Bank.

"With the global economic downturns, the baseline of the countrys economic growth is 5.1 percent, plus 0.5 percent with extra efforts in changing the expenditure pattern in reallocating fuel oil subsidy and the 0.1 percent predicted positive impact of the quantitative easing," Bambang said.(*)

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