Minister: 2011 Growth Target of 6.3% Realistic

Finance Minister Agus Martowardojo said on Tuesday the economic growth target of 6.3 percent for 2011 is quite realistic in line with prospects for the global economy.

“It is realistic projection amidst uncertain global economic recovery marked by debt crisis and fiscal deficit in a number of European countries and economic slowdown in the United States and several other industrialized countries,” he said when delivering the government’s replies to the House of Representatives (DPR) factions’ general views on the draft 2011 state budget.

The economic growth forecast of 6.3 percent would chiefly be fueled by domestic demand and supply, he said.

With the 2011 economic growth rate projected at 6.3 percent, the government expected to cap the next year`s inflation rate under its target rate of 5.3 percent, he said.

The inflation forecast was based on the consideration that robust economic activities would be followed by increased production capacity in line with growing investment inflows, he said.

In setting the inflation target of 5.3 percent for 2011, the government also had taken into account potential inflationary pressures triggered by the limited policy to adjust administered prices, he said.

The government would keep taking necessary steps to increase economic growth by among others boosting economic growth factors, particularly investment, public consumption, government consumption and exports, he said.

Efforts to attract more investment would be made by creating a conducive climate and speeding up development of infrastructure facilities, he said.

In the draft 2011 state budget, the government also has set the target of the rupiah’s exchange rate against the US dollar at Rp9,300 per dollar, crude oil price at US$80 per barrel, oil lifting at 970 thousand barrels per day, and interest on Bank Indonesia Certificates (SBI) at 6.5 percent for three-month deposits.

Source : Antara