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MACROECONOMICS

Government won’t achieve growth target: Minister

Tuesday, 14 November 2017 | Barratut Taqiyyah Rafie

KONTAN.CO.ID - JAKARTA. National Development Planning Minister Bambang Brodjonegoro has expressed his pessimism that the government will achieve its target of 5.2 percent economic growth.

The estimation was made based on the 5.03 percent growth in the third quarter. “The government is struggling to achieve 5.2 percent economic growth,” said Bambang as quoted by tempo.co.

However, he added, to achieve the target, economic growth in the fourth quarter must reach 5.5 percent.

Even if the government could boost exports, investment and government spending in the fourth quarter, the economy is estimated to grow between 5.2 percent and 5.4 percent. In the third quarter, investment grew 7.11 percent, while exports grew 17.27 percent.

“So the economy will grow about 5.1 percent annually.” He added.

Bambang, however, expressed his optimism that in 2018, the economy could grow above 5.2 percent. “But if investment grew similar to the level in the third quarter of 2017,” said Bambang.

Previously, Bank Indonesia Governor Agus Martowardojo said the economic growth was supported by the development of infrastructure and government spending.

“In the first half of 2017, government spending was not optimal,” he said, adding that government spending was expected to improve in the second half.

Source : The Jakarta Post

Reporter: Barratut Taqiyyah Rafie
Editor: Barratut Taqiyyah Rafie
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