Indonesia looks to higher GDP growth next year as consumption ticks up

Source: Xinhua| 2019-04-23 20:41:04|Editor: xuxin
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JAKARTA, April 23 (Xinhua) -- The Indonesian government has set a stagnant or higher economic growth target next year as consumption and investment are looked to stay afload.

The government assumed the economic growth will hover 5.3-5.6 percent next year, Indonesian Finance Minister Sri Mulyani Indrawati disclosed on Tuesday.

"President expects we can achieve 5.6 percent," Minister Mulyani said, referring to Indonesian President Joko Widodo.

That compares with 5.3 percent growth's expectation for this year.

Consumption accounted for over a half of the growth is projected to drift higher 5.2 percent next year from this year's expectation of 5 percent, said Mulyani.

On investment, Mulyani said, it is projected to accelerate at 5.6 percent in 2020, nevertheless the president wants investment growth to move up 7.5 percent.

While export is projected to accelerate 7 percent and import 6 percent next year, she said in Bogor town of West Java province.

The spending of the development budget would be focused much on efforts to drive up investment and exports, Mulyani asserted.

"The president asked the allocation of development budget to focus on development policies, especially spending for capitals and infrastructure," Mulyani said..

The government assumed inflation to touch between 2-4 percent and rupiah value against the greenback 14,000, she was quoted by a local media as saying.

That compares with the assumption at this year's state development budget of 15,000, which was determined event at the U.S. Fed. Reserve hawkish policy was nudging emerging economies, triggering capital outflows.

Indonesian central bank is likely to have rooms to give stimulus on the economy in the wake of U.S. Fed. Reserve's signal of more-than-expected dovish tone for this year.

Despite of emerging economies weathering knock-on effect of the descending global economy, Indonesian economy still expanded 5.17 percent in 2018.

The government assumptions on the economic data is going to be presented to the parliament in August.