Economy moving on although still slow

Economy moving on although still slow

Reading the Bank Indonesia report on the performance of the Indonesian economy during the first quarter of 2002, we feel relieved. The economy continues to move forward, although it remains slow. Economic growth during the first quarter was in the 3.2 percent range. While for the third quarter, it is estimated that it increased to between 3.5 percent and 4.0 percent. Such a situation is obviously not the best that could be hoped for, but it is better than it was before. Moreover, there are still grounds for optimism in the next quarter due to a number of factors, including the macroeconomic situation, monetary and banking developments, as well as the debt restructuring process. If conditions continue to be conducive and are not uninterrupted by political and security instability, it is likely that economic growth will approach five percent again.

It should be admitted that a growth rate of between three and five percent is not bad. Understandably, structural conditions have actually not changed much yet. Based on estimates, the recovery in the banking sector will not be as fast as hoped for. In fact, fresh problems have emerged recently even though the recovery was previously described as being quite smooth. Other tasks, which are more onerous, are to fulfill the IMF targets on both the privatization of state-owned enterprises and the divestment of major banks.

-- Suara Merdeka, Jakarta