Economic Target 2012 Assessed Too Low

JAKARTA: The government considered to be too pessimistic in Indonesia set a target of economic growth next year is only 6.9%.
Economist Institute for Development of Economics and Finance Indonesia (INDEF) Erani Yustika Ahmad said the government should be able to see other countries in high-growth Asia.

`Just as China is in the 5-year economic growth above 10%, while for India to reach 8% as well as Vietnam. Indonesia should be able to peg growth to 8%, `he said in Jakarta today.

According to Ahmad, the growth target to 8% is very possible to reach Indonesia because it has adequate resources. However, the government also should improve the management of development that had been considered too `chaotic`.

`We saw a misguided economic policies, further infrastructure development is lacking. In the future, these things need to be considered the government, `he continued.

Bank Mandiri chief economist Destry Damayanti projected economic growth next year could be at the level of 7.1%. But he expects economic growth must be qualified.

`This means that economic growth is achieved must be followed by employment. There are implications to the real sector, `said
Destry.


Meanwhile, Secretary of the National Economic Committee (KEN) Aviliani said the government should be able to peg the rate of economic growth next year at a minimum level of 7%. The consideration, the growth up to level 7% was based on government programs already underway.

According Aviliani, the government does not do anything, economic growth can reach 6.5% as seen in this year. `We did not see because there is pessimism that the government increased fuel prices. The government seems not too bold to take the policy, `he said.

By : Ahmad Erani Yustika, (INDEF).
Source : Business