The World Bank (WB) has lowered its forecast for Indonesia’s economic
growth this year from 6.2 percent to 5.9 percent as global economic
conditions have yet improved and investment dropped.
This is the second adjustment made by the WB, Indonesia’s Finance
Minister Chatib Basri said at a press conference on July 2, noting that
this makes the country aware of difficulties it is facing and requires
the Government to take extra efforts and strengthen its determination to
weather them.
Earlier, the WB, an
international financial institution which provides loans to developing
countries, cut its economic growth forecast for Indonesia from 6.3
percent to 6.2 percent.
According to the
Minister, the Government will take anticipatory measures against global
economic pressures that include accelerating structural reform and
improving budget policies to achieve this year’s preset economic growth
goals.
There will still be volatility until the
end of the year due to a slowdown in domestic demand and continued
pressures on the prices of commodities as well as export revenue, WB
Chief Economist in Indonesia Ndiame Diop said.
Indonesia must
make serious assessment of the national economic slowdown in the first
quarter to put forth appropriate measures to secure its macro-economic
stability, Diop said.-VNA