VIVAnews - The International Monetary Fund (IMF) predicts Indonesia's economic growth to exceed 4.8 percent, which is higher than the IMF's previous projection of 4.8 percent and lower than the government's 5 percent estimation.
According to the IMF Senior Resident Representative Milan Zavandjil, Indonesia's economy will grow strongly, considering the fact that it is among other countries having the best economic condition after the economic crisis. IMF predicted Indonesia's economic growth would reach four percent in 2009.
The positive economic growth is supported by the domestic consumption and high investment. Strong demand triggers an increase in investment. "Growth of 4.8 percent or more is still possible," Zavandjil said in Jakarta on Monday, Nov. 2.
However, Zavandjil added that economic recovery will still be delayed by 2010. It is predicted that export would still be weak. Therefore, countries need to maintain policies, such as fiscal stimulus disbursement, and deficit extension. Indonesia's deficit rate in 2010 will reach around 1.6 percent, or equal to Rp 98 trillion.
"The fiscal and monetary policies need to be maintained until the condition is fully recovered," he said.
Meanwhile, Zavandjil explained that the 100-day-program that the government prepared does not have to be completed in 100 days. It should comprise governmental programs that can be implemented in 100 days to 5 years.
"The Indonesian [government] should focus on infrastructure," he added.
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Translated by: Ariyantri E. Tarman
