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| A woman watches bread baking in a small enterprise in Jakarta. In the forthcoming year, Indonesia is determined to achieve sustainable growth with equity, and one of the focuses is SMEs' global competitiveness. (illustration) |
Indonesia's economic growth this year is expected to be corrected to
5.9 percent. It is lower than previous prediction 6.2 percent which is
mentioned in government's basic of macroeconomic assumptions in State
Budget 2013.
Economist at the Institute for Development of Economics and Finance
(Indef) Enny Sri Hartati said the growth correction was caused
government's plan to increase fuel price subsidy this month. The fuel
price hike would boost inflation to be in range 8 to 8.5 percent. The
prediction is also much higher than government's assumption of 7.2
percent.
"Sources of economic growth in Indonesia is the largest household
consumption. If the inflation increases, the purchasing power will be
corrected. So that, the decrease in consumption will occur and will give
a negative impact on economic growth," Hartati said on Tuesday.
Component of household expenditure accounted 54.56 percent for
Indonesia's economic growth in 2012 and 54.61 percent in 2011. Minister
of Finance, M Chatib Basri said government has proposed economic growth
in Draft of Revision of State Budget 2013 at 6.2 percent, while
inflation at 7.2 percent. It has included impact of rising fuel price.
"Government believes economic growth will not be below six percent.
Related to contribution component of household expenditure, the
influence of general election activities will be more visible in the
next six months. It will give a positive effect on household
consumption," Basri said.
Sources :
http://www.republika.co.id/berita/en/jakarta-region-others/13/06/11/mo8fbz-economist-indonesias-economic-growth-is-predicted-to-59-percent
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