Indonesia's Economic Growth Estimated at 4,7%

Dian Ihsan Siregar    •    Rabu, 04 Nov 2015 16:55 WIB
economic growth
Indonesia's Economic Growth Estimated at 4,7%
Construction of a building in Jakarta. (Photo: MI/Galih Pradipta), Jakarta: The growth of Indonesia's economy is predicted to only reach the level of 4.7 percent by the end of the year. The number is smaller than the 2014 Revised State Budget of 5.2 percent. 

"The 4.7 percent for Indonesia's economic growth this year, is indeed smaller than the government's expectation," mentioned the Chief Market Analyst & Vice President Corporate Development ForexTime Ltd (FXTM) Jameel Ahmad to, Tuesday (11/3/2015).

The inflation pressure, which so far has strengthened, has triggered the economic growth of Indonesia into a slowdown this year. Nevertheless, September 2015 has experienced a deflation of 0.05 percent.

‎"Due to the inflation pressure, purchasing power decreased, consumers refrain from buying, consumption level stays. So the government added the price of economic growth this year without thinking of the pressured commodities," explained Jameel.

The economic growth may be better, he said, if the State Budget fund from the government is well distributed by the end of the year, such as infrastructure spending and others.

"The effect is to increase the employment, investor's trust increases. Economic growth will be supported," he mentioned.

Aside from that, the declining rupiah also triggered the slowdown of Indonesia's economic growth, as the slumping rupiah had caused rising import prices and lowering consumer capability.

"Rupiah weakens, import down and spending down. Finally Indonesia's economic growth is interrupted," concluded Jameel.


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