Wednesday, 20 October 2021 | 13:06 WIB

Although Optimistic, Finance Minister Says Economic Growth Potentially Misses Target

Finance Minister Sri Mulyani

JAKARTA, NNC - Finance Minister Sri Mulyani said that the economic growth target could potentially miss the initial target set in the State Budget.

Initially, the government projected that Indonesia's economic growth throughout 2018 was in the range of 5.14-5.21 percent or lower than the assumptions set in the 2018 State Budget which amounted to 5.4 percent.

"Throughout 2018, the economic growth we estimated at 5.14 percent to 5.21 percent. That's a baseline, but that could miss at 5.15 because of the dynamics with imports which are increasing due to the depreciation of the rupiah so that investment and consumption are affected. It is down to 5.15 percent in 2019," Sri Mulyani said at the Senayan complex, Thursday (9/13/2018).

Minister of Finance added that on the existing indicators, the influence of imports in the third quarter of 2018 remained high, due to a shift in the previous quarter.

But Sri Mulyani said she remained optimistic that Indonesia's economic growth throughout 2018 would still grow above five percent, in line with the momentum of the national economy.

"Exports will rise eight percent and imports fall. So expect the balance of payments from the treat account to be balanced, steady at 6-7 percent and household consumption and inflation are maintained in the fourth quarter," she explained.

Moreover, the macro assumption set is the rupiah exchange rate against the United States dollar. The realization of up to the first half of 2018 is IDR13,855 per dollar compared to the macro assumption in the State Budget of 2018 which is in the range of IDR13,400 per dollar.