2016 Still a Tough Year for Economy: Finance Minister

Suci Sedya Utami    •    Kamis, 17 Dec 2015 14:16 WIB
economic growth
2016 Still a Tough Year for Economy: Finance Minister
Minister of Finance Bambang Brodjonegoro (Photo: Antara Foto/Sigid Kurniawan)

Metrotvnews.com, Jakarta: Indonesian Minister of Finance Bambang Brodjonegoro stated that the difficult global economic condition most certainly will continue in 2016.
 
Bambang stated the idea during the Investor Award "Inauguration of Indonesian Financial Figure", held at the Energy Building, SCBD, South Jakarta, Wednesday evening (12/16/2015).
 
He mentioned that prior to attending the event, he had a meeting with the team from the International Monetary Fund (IMF), which is conducting a study on its member countries from the fiscal, monetary, and financial sectors.
 
From the meeting, Bambang mentioned, IMF assumed that next year would not be an easier year for the global economy, which will surely affect domestic economy. 
 
"As they think that next year the growth will be difficult and heavy, then there will be a revision of growth number," mentioned Bambang.
 
The former Acting Chief of Fiscal Policy Agency (BKF) elaborated that the Federal Reserve, is to increase its interest rate by 25 basis points. He asserted that the increase will more or less trigger fluctuations in the bond market.
 
As in 2013, during the taper tantrum, the former boss of the Fed, Ben Bernanke, signaled it could increase the interest rate, creating chaos in the financial market.
 
"The turmoil was extraordinary, as the depreciation of rupiah reached its peak from Rp8,000 per USD to Rp12,000 per USD in a year," mentioned Bambang. 
 
There is also an addition of the Chinese economic slowdown, which is still ongoing and imposing real effect to Indonesia. However, although it is heavy, the government is initially trying to be optimistic by assuming the economic growth at 5.3 percent.
 
"With our efforts next year, we will boost the government spending to be better," he concluded.



(WAH)