War will hamper economic recovery: Bank Indonesia<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Bank Indonesia senior deputy governor Anwar Nasution said on
\nThursday the war in Iraq would hamper Indonesia's economic
\nrecovery.<\/p>\n
He said the war would inevitably affect the country's economic
\nfundamentals.<\/p>\n
\"If exports fall sharply ... it will affect the economic
\nrecovery process,\" Anwar was quoted by Antara as saying during a
\nlecture at a university in Malang, East Java.<\/p>\n
The country plunged into a severe economic crisis in 1998.
\nSince last year, the economy has begun to show signs of recovery,
\nwith the government projecting economic growth of 4 percent this
\nyear.<\/p>\n
Analysts earlier said the war in Iraq would negatively affect
\na number of Indonesia's economic sectors.<\/p>\n
Exports are expected to slow as a result of the war,
\nparticularly if it drags on for any length of time. Analysts say
\nwar would undermine the already fragile economies of developed
\ncountries, Indonesia's major export destinations.<\/p>\n
The local tourist industry, which has just begun to recover
\nfrom the devastating impact of the Oct. 12, 2002, Bali bombings,
\nis also expected to suffer, with foreign tourists afraid to
\ntravel to the country on concerns over anti-Western sentiment.
\nTourism has been a major contributor to Indonesia's foreign
\nexchange revenue.<\/p>\n
Analysts say the war will also affect the country's fiscal
\nsituation, with the key privatization program having to be
\ndelayed amid the global uncertainty.<\/p>\n
Meanwhile, Minister of Finance Boediono told reporters that
\nthe government was preparing a contingency plan to minimize the
\nimpact of war on the economy, particularly on the supply of fuel
\nproducts and food, and on exports.<\/p>\n
He did not go into detail on what measures would be taken by
\nthe government.<\/p>\n
But state-owned oil and gas firm Pertamina earlier said the
\ngovernment should limit the export of crude oil by foreign
\ncontractors to help ensure the supply of fuel products at home.<\/p>\n
The government will also delay the planned overhaul of oil
\nrefinery facilities to help ensure the domestic fuel supply.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/war-will-hamper-economic-recovery-bank-indonesia-1447893297",
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