June 3, 2009

Indonesia Economy Not concerned

Observers from the Institute for Economic Development of Economics and Finance (Indef), Aviliani, says not worried over economic growth in Indonesia due to first quarter 2009 is going to reach 1.6 percent growth.

"If they are more optimistic economic growth will reach 3.2 percent, but the problem is so quality of economic growth that," he said in Jakarta on Wednesday.

He said that this was related to economic conditions that are part of the RI still fragile circle, indicates the receipt of tax and export customs down business, and how should the government maintain economic growth of 4.5 percent dipatok the year 2009.

According to him, the business sector does not want to bring to the expansion because the rupiah is stable moreover do not export. "On this side of the recipient country will export any goods to limit imports in order not to suspension of the employees," he said.

While the business sector in Indonesia, he said, is somewhat stagnant in that sector are food, food and drink, and during the last three months indicates that sector increase.

These anomalies, so the economic sector in Indonesia is still trading, but the industrial sector have a problem except in the contract of goods despite global economic crisis occurred.

He rate, the global economic crisis in Indonesia is not experienced as a community will never diisukan removal of a large-scale manufacturing because of the way and hold still.

However, outside of the real sector such as banks is decreasing. But the problem in Indonesia, the sector that is derived from the capital market on the foreign investors, not into the real sector. "If the foreign investment in the capital market to the outside, then it will cause problems in the country because the fundamentals have not been supporting the real sector," he said.

Both the above sectors, he said, is needed fiscal and tax incentives in the industry or sector so that the real government in the future should reduce the investment because it has not been nonsektor real impact on the community, he added.


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