Global Economy to Contribute Favorably to Indonesia

“I am still optimistic that the development of the global economy can positively contribute to the Indonesian economy,” Bambang stated here on Friday.

He made the statement in response to the rising concerns about the slowdown in Chinas economic growth that can have a negative impact on Indonesias economy.

After attending a meeting of the Financial System Stability Coordination Forum (FKSSK) at the Finance Ministrys building, Bambang remarked that the concerns should be raised with regard to the internal conditions in Indonesia, as they have the potential to affect the countrys inflation.

“We should be highly concerned about our internal conditions such as floods, which can affect inflation, among other things,” he noted.

However, the deputy minister reported that he was not in a position to forecast the rate of inflation in Indonesia for the current year.

“It is important that we maintain our food resilience in order to curb the inflation rate, so that it does not rise to last years level,” Bambang added.

He pointed out that the global economy, led by the United States and Japan, was now improving. He also cited indicators for improving the economic conditions in Europe, China, and India.

Indonesias economic growth in 2013 was forecast at 5.7 percent, which is lower than the recorded growth of 6.2 percent in 2012.

The decline in Indonesias economic growth in 2013 was partly due to declining exports as a result of a slowdown in the global economy.

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