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Monday, July 12, 2010 23:49 WIB | Economic & Business)
Jakarta (ANTARA News)
The government
sees its economic growth target of 5.8 percent for this year is
still realistic even though many have predicted the economy may grow
at a higher pace.
"We still maintain it at 5.8 percent. This is realistic figure
because the first-quarter growth is 5.7 percent," Coordinating
Minister for Economic Affairs Hatta Rajasa said here on Monday.
Certain quarters, including international bodies had predicted the
Indonesian economy might expand more than 6.0 percent this year, the
minister said.
Some factions in the House of Representatives (DPR) had earlier
expressed optimism that the economic growth target of 6.6-7 percent
for 2011 could be achieved.
The optimism was based on favorable domestic economic developments,
manageable macro economic and monetary stability and other positive
indicators.
The domestic economy grew by 5.7 percent in the first quarter of
2010, or 0.1 percent lower than the target of 5.8 percent set in the
revised 2010 state budget.
Last year, the national economy grew by 4.4 percent.
The House of Representatives asked the government to take into
account inputs, views and suggestions from the House with regard to
the draft 2011 state budget.
Asked to comment on the low budget absorption until late June, Hatta
said the government spending particularly on capital goods had
indeed become the center of attention.
"But compared to 2008 and 2009 the difference is only 1 percent so
we still have a chance to meet the target," he said. (*)
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