5.2% Economic Growth: Just a Dream for Indonesia?

Dian Ihsan Siregar    •    04 Agustus 2015 14:51 WIB
economic growth
5.2% Economic Growth: Just a Dream for Indonesia?
General view of Jakarta. (Photo: Antara Foto / M Agung Rajasa)

Metrotvnews.com, Jakarta: Indonesian government is seen as having to work extra hard to achieve the economic growth of 5.2 percent this year. The variety of pressure still haunts the local economy condition.

"The target of Indonesia's economic growth is hard to reach, but Indonesian government is still optimistic that it will grow, despite a downgrade of the estimation by global financial institutions such as IMF and World Bank. So it will be hard to achieve, moreover with the pressure on our economy, it will become even harder," said the Chief Market Analyst of ForexTime Ltd (FXTM) Jameel Ahmad to Metrotvnews.com, Tuesday (8/4/2015).

With the amount of pressure, he said, the range of Indonesia's economic growth will be below that certain range, except the government is capable of providing positive stimulus. He thinks that the stimulus may become the acceleration of government spending, as it is still slow and below expectation.

Not only that, he thinks the high inflation rate in Indonesia also provided negative sentiment to the economic growth. Therefore, the improvements on inflation should become the main focus of the government, aside from correcting Rupiah that has been fluctuating continuously.

"So, the number of high inflation caused Rupiah to weaken, weakening Rupiah will be continually depressed, rupiah weakens therefore the government increased import spending, which affects the economic growth," he said.

However, Jamel was reluctant in predicting this year's economic growth, as it requires as an intensive statistics to overview the economic growth movements. But what is clear is that this year's economic growth still reached below 5.2 percent.


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