Govt sets next year`s economic growth at 5 pct

The government has projected Indonesia`s economic growth at five percent next year, and thereby reducing employment and poverty in the country. State Minister for National Development Planning/Head of the National Development Planning Agency Paskah Suzetta told a hearing with the House budgetary committee in Jakarta Monday.  With the five percent growth, the unemployment rate would be reduced to eight percent, and the poverty rate to 12 percent.

He said the Indonesian economy has achieved some progress, despite the pressure posed by the global crisis.But the government has anticipated an increase in unemployment and in poverty in the last few years.  He said that to reach the goal, the government will focus on four programs, namely expanded access to the poor, and improving social welfare.

Increasing the empowerment and self-reliance of the people, improving the effectiveness of the implementation and coordination of the eradication of poverty, and increasing the capacity of micro and small scale businesses through increasing institutional effectiveness.  "In the meantime, the government also projected next year`s inflation rate at five percent" he said.

In the meantime, Deputy Senior Governor of Bank Indonesia Miranda Goeltom estimated that Indonesia`s economic growth next year will reach 4-5 percent, which compared to those of the other emerging countries in Asia and in Latin America, Indonesia`s economic growth has a higher resilience.

She said that the projected economic growth next year is of two main categories, namely in terms of consumption, consisting of four sectors comprising household consumption 3.9-4.9 percent, investment 7.8-8.8 percent, exports of goods and services 3.5-4.5 percent, and imports of goods and services 2.4-3.4 percent.

The second category is based on lines of business, namely farming 3.5-4.5 percent, mining and quarrying 1.6-2.6 percent, processing industry 2.7-3.7 percent, electricity, gas, and clean water 11-12 percent, in addition to building construction 7.2-8.2 percent, trade, hotels and restaurants 2.9-3.9 percent, transportation and communication 8.6-9.6 percent, finance, leasing, and services 5-6 percent, and services 4.1-5.1 percent.