JAKARTA (Yosefardi) – Finance minister Bambang Brodjonegoro expects Indonesian economy to grow by 5.4% this year, higher than 5.02% last year, but will make efforts to achieve initial target of 5.7% growth for this year.
This is a new outlook made by the government after reading an economic slowdown in the first quarter of this year. The government will boost investment through state budget, state-owned enterprises (SoEs), and private sector.
The International Monetary Fund (IMF) has also revised down global economic growth estimation to 3.1% from initial 3.3%, prompting the government of Indonesia to follow suit.
The government targets an optimum growth for this year by boosting tax revenue and accelerating the government’s spending. Based on the revised 2015 state budget, the tax revenue is set 31.41% higher at Rp1,294.26 trillion for this year, compared to Rp984.90 trillion realized in last year.
Bambang noted the global condition is not uncertain to expect its development or direction amid the uncertainty of the Fed rate policy, the declining trend of crude oil prices for the long term, and global political agenda.
Other commodity prices, such as coal and crude palm oil (CPO), the main export products of Indonesia, are also in bearish. The economy of China and India, the main export destination for Indonesia, are also slowing down.