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