'Last year's growth may be below 8%

JAKARTA (JP): Minister of Development Planning Ginandjar Kartasasmita said yesterday that Indonesian economic growth last year was estimated to exceed 7.5 percent but was lower than the 8 percent achieved in 1995.

Speaking to reporters after meeting with President Soeharto, Ginandjar said the government was still calculating the exact figures.

"But it will be between the growth rates achieved in 1994 and 1995. In 1994 we grew by 8.1 percent," he said.

Ginandjar said the strengthening of the dollar against the yen would be an advantage to Indonesia's exports, but too-strong dollar would not be beneficial to Indonesia.

"A strong dollar will increase our export earnings, but if it is too strong, it will have a negative impact on our competitiveness," he said.

It was for this reason, he said, that Indonesia should increase the competitiveness of its export commodities.

"Exports must be our top priority," he said.

Finance Minister Mar'ie Muhammad said on Wednesday that Indonesia's foreign debt was declining due to the weakening of the yen against the U.S. dollar. He said 40 percent of Indonesian foreign debts were denominated in yen.

The World Bank estimated Indonesia's foreign debt, including private sector loans, at some $100 billion. (pwn)