ID :
27325
Wed, 10/29/2008 - 18:19
Auther :
Shortlink :
http://m.oananews.org//node/27325
The shortlink copeid
RI'S ECONOMIC GROWTH TO DROP TO 3.7 PCT IN 2009 : OBSERVER
Jakarta, Oct 29 (ANTARA) - Indonesia's economic growth is expected to fall sharply from this year's estimated 6.1 percent to 3.7 percent in 2009 due to the pressures of global economic turbulence, an economic observer said.
Economic Conferences Co-chairman Wood told the press here on Wednesday that Indonesia's economic growth would tumble because of a tightening of global liquidity and scarcity of financing sources.
A decline in Indonesia's exports would also have a negative impact on the country's economic performance, he said.
The Indonesian government had actually succeeded in making economic improvements in the last few years so that until today it is still able to withstand the on-going global financial uncertainties and economic meltdown.
At the same time, Wood added, a number of countries had already collapsed amidst the escalating global financial crisis.
Wood said this year the first concern was about the upward trend in inflation but it would not last long in line with improvements in food prices and the fall of world crude prices.
"But the impact of bad credits at present needs to be given further attention," Wood said.
Indonesia's capital and money markets had been impacted while the next threat that would likely surface is the change of ownership of government bonds to foreign investors, he said.
"The increasing threat of global risk and the outflow of foreign capital is a heavy threat in the future," he said.
This, he said, will worsen the rupiah's value against the greenback although Bank Indonesia (BI/the central bank) has made various efforts to resist the market pressures.
Therefore, BI had until now maintained its benchmark interest rate at 9.5 percent while on the other hand BI was also relaxing its tight liquidity policy.
Economic Conferences Co-chairman Wood told the press here on Wednesday that Indonesia's economic growth would tumble because of a tightening of global liquidity and scarcity of financing sources.
A decline in Indonesia's exports would also have a negative impact on the country's economic performance, he said.
The Indonesian government had actually succeeded in making economic improvements in the last few years so that until today it is still able to withstand the on-going global financial uncertainties and economic meltdown.
At the same time, Wood added, a number of countries had already collapsed amidst the escalating global financial crisis.
Wood said this year the first concern was about the upward trend in inflation but it would not last long in line with improvements in food prices and the fall of world crude prices.
"But the impact of bad credits at present needs to be given further attention," Wood said.
Indonesia's capital and money markets had been impacted while the next threat that would likely surface is the change of ownership of government bonds to foreign investors, he said.
"The increasing threat of global risk and the outflow of foreign capital is a heavy threat in the future," he said.
This, he said, will worsen the rupiah's value against the greenback although Bank Indonesia (BI/the central bank) has made various efforts to resist the market pressures.
Therefore, BI had until now maintained its benchmark interest rate at 9.5 percent while on the other hand BI was also relaxing its tight liquidity policy.
