Kamis, 02 Juni 2011

Central Bank Doubts over Govt's Target



VIVAnews – Bank Indonesia deemed the targeted economic growth for 2012 of between 6.5 and 6.9 percent is difficult to achieve. This is because the economic supply has been maximum.

"It doesn't mean that BI is more pessimistic than the government. It's just that the perspective is different," said BI Governor Darmin Nasution on Wednesday, June 1.

He explained that the superlative economic supply caused investment apart from infrastructure difficult to raise the growth. The growth can only be pushed by investment in infrastructure, other factors come next.

"That's the difference. BI sees that the capacity has been used up, so it's not easy to raise the growth by the remaining capacity," he went on.

BI warned that if there is no significant infrastructural development, high economic growth would be difficult to reach. Growth can be achieved only at a small scale. If the growth is forced, inflation would go up faster.

However, Darmin emphasized that infrastructure cannot be engaged in briefly. "Infrastructure cannot be realized within a year. It takes time to rearrange it," said Darmin.

When asked what the government must do to meet its economic growth target, Darmin is of the opinion that breakthroughs in the middle of this year are necessary. The government can fix the strategic infrastructure such as smoothen the transportation to Tanjung Priok and Tanjung Perak harbors. "Those can still be done," he said.

It is estimated that Indonesia will obtain investment grade from the world rating institution, which will attract investors.

• VIVAnews



   


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