Indonesia not in a situation heading for a crisis: economist

Kupang, E Nusa Tenggara, Aug 26 (Antara) - An expert from the Catholic University of Widya Mandira (Unika) Kupang Dr. Thomas Ola Langoday said Indonesia is not facing an economic crisis despite the shrinking value of rupiah. Dr Thomas dismissed call for forming a Crisis Center, saying the government already has a mechanism to deal with economic problem. Forming a crisis center would even create overlapping in the management of the situation, and trigger negative sentiment,he said. He said the country is not in the same condition as in 1998 when regional monetary crisis hit the country with contraction in economic growth, and soaring inflation. Now a positive growth of 4.7 percent is still recorded for the country's economy, he said. Bank Indonesia also said it is wrong to compare the present condition and the 1998 crisis marked with soaring inflation at 60 percent, negative economic growth and high non performing loan. The central bank said the country's inflation is well under con trol around 4 percent, and the NPL is well below the maximum level considered unhealthy. Meanwhile, President Joko Widodo said all instruments of the governments have been used to cope with economic slowdown. The president said maintaining optimism and confidence is important among the people as the problem is caused by external factors. On Tuesday the Jakarta composite index gained 1.56 percent after slumping 3 3.97 percent the day earlier. Major companies said they continued to implement their project despite threat of worse global crisis. PT Unilever Indonesia said it would go ahead with its plan for Rp1.2 trillion expansion program including building new factory . State owned and the country's largest telecommunication company PT Telkom is set to carry out development of its infrastructure project. State-owned oil and gas company PT Pertamina said the present condition would cause it to delay implementation of its project with capital spending of US$4.4 billion this year.