RI sees 'strong' growth this year<\/p>\n
FUKUOKA, Japan (Agencies): Finance Minister Mar'ie Muhammad
\nsaid yesterday Indonesia's economy was likely to expand at a
\nrapid pace this year with little sign of overheating.<\/p>\n
\"We are confident that the economy will again register strong
\neconomic growth in 1997,\" he told the annual meeting of the Asian
\nDevelopment Bank (ADB), citing the positive impact of recent
\nderegulatory steps.<\/p>\n
While Indonesia's gross domestic product (GDP) grew at a real
\nannual rate of 7.83 percent over the past six years, he noted
\nthat consumer price inflation had fallen to 5.17 percent in
\nfiscal year 1996\/97, the lowest level in 12 years.<\/p>\n
\"Despite the strong expansion, the Indonesian economy has
\nshown few signs of overheating,\" he said.<\/p>\n
Mar'ie also noted that Indonesia was still viewed as a \"prime
\nlocation\" for foreign direct investment with approvals reaching
\nUS$29.9 billion in 1996.<\/p>\n
\"The implementation of new investment projects for which these
\nfunds are targeted will create substantial new industrial
\ncapacity that will help us meet the demands of our growing
\ndomestic market as well as creating additional export capacity,\"
\nthe finance minister said.<\/p>\n
\"In large measure, these flows are a response to our ongoing
\nderegulation policies which have increasingly made Indonesia an
\nattractive investment destination,\" he added.<\/p>\n
The minister said Indonesia's current account deficit could be
\n\"readily managed\" at around four percent of GDP.<\/p>\n
Mar'ie added the Indonesian government wanted to prepay
\nexpensive loans from the ADB by using funds earned from
\nprivatization.<\/p>\n
\"The government of Indonesia is firmly committed to fully
\nhonoring all of its international financial obligations. Indeed,
\nthe government will continue to prepay the high-cost loans from
\nthe Asian Development Bank by utilizing the proceeds of funds
\nraised by our ongoing privatization programs and budget
\nsurpluses,\" he said.<\/p>\n
Meanwhile, Bank Indonesia's governor Soedradjad Djiwandono
\nsaid here yesterday that he was worried about the recent rise of
\nthe yen against the dollar, as much of the country's external
\ndebt is denominated in yen.<\/p>\n
\"We are concerned (about the rise of the yen) partly because
\nour exposure for government debt to the Japanese yen is high,
\nmaybe close to 40 percent,\" Djiwandono told Reuters Financial
\nTelevision in an interview.<\/p>\n
He also said the rupiah had depreciated three to five percent
\na year since the early 1980s, and said he has been \"comfortable\"
\nwith the depreciation.<\/p>\n
\"When we talk about the depreciation of the rupiah, it's part
\nof our efforts to support the export drive to help our
\ncompetitiveness in exports,\" he said.<\/p>\n
Djiwandono said there is room for lower interest rates in
\nIndonesia when inflation is under control. \"Once inflation is
\nunder control, room for lower interest rates is there,\" he said.<\/p>\n
However, interest-rate trends in major nations such as the
\nUnited States are complicating Indonesia's moves on interest
\nrates.<\/p>\n
ADB -- Page 10<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ri-sees-strong-growth-this-year-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }