Tue, 13 Jul 2010

Jakarta (ANTARA News) - The government is of the opinion that the target of 5.8 percent economic growth is realistic, although several parties say it can be higher.

"We set it at 5.8 percent as realistic figure because in the first quarter of this year realization reached 5.7 percent," Coordinating Minister for Economic Affairs Hatta Rajasa said here on Monday.

Hatta admitted that a number of parties including international circles were of the opinion that Indonesia`s economic growth could reach over 6.0 percent in 2010.

"The international circles as well as economic observers are also optimistic that our economic growth can be higher but we are going with the figure of 5.8 percent," Hatta said.

Regarding the slow realization of the absorption budget until late of June this year, Hatta said actual expenditures particularly capital spending was still under the spotlight.

"But in comparison with 2008 and 2009, the difference is only percent and thus it can still be pursued," Hatta said.

He added that in relation with economic growth, the House of Representatives` factions were optimistic that the target of 6.6 to 7 percent in 2011 could be reached.

Hatta said their optimism was based on the potential and positive development of domestic economy, macro economic stability, and well-kept monetary as well as various other positive indicators.