Minister optimistic RI`s Q3 growth to exceed 4 pct

Thursday,13  August 2009

ANTARA News Agency

Finance Minister Sri Mulyani Indrawati has expressed optimism the national economy will grow by more than 4 percent in the third quarter of 2009, driven by stronger exports, imports and investment flows.

"Judging by the conditions in the second quarter, we are optimistic the economy in the third quarter will perform better than in the second quarter," she said after inducting 26 second-echelon officials at the Finance Ministry here on Thursday.

Exports, imports and investment in the third quarter would most likely grow at a faster pace than in the second quarter, she said.

"It is expected consumption growth will remain good and investment flows will also be better," she said.

The Central Bureau of Statistics (BPS) said on Monday the economy grew by 4 percent in the second quarter of 2009 from the same period a year ago. The figure exceeded Bank Indonesia (the central bank)`s forecast of 3.7-4 percent.

Although the economy in the second quarter of 2009 grew at a slower pace due in part to a decline in exports and private consumption it remained among the world`s best-performing economies.

Responding to a call for the government to raise a deficit in the draft 2010 state budget to 2.0 percent from 1.6 percent, she said the important thing was not the amount but what the budget fund would be used for.

"We will look at what sectors will be financed by the fund because if we raise the deficit it will add to the amount of debts," she said.

The minister said she would study any proposal about what the government needed to do to support the economic recovery.

The newly-inducted officials consist of three from the secretariat general, three from the directorate general of customs and excise, three from the directorate general of state property, four from the capital market and financial institutions supervisory board (Bapepam-LK) and 12 from the directorate general of treasury.(*)