Minister Agus Martowardojo said he was optimistic that Indonesia would
achieve its economic growth target of 6.8 percent in 2013.
government is still confident the target could be achieved, even though
many said it was too high,” Agus said after attending a plenary session
of the House of Representatives on the draft state budget for 2013 on
He said that in order to achieve the target, the government would accelerate the implementation of the government projects.
administration will encourage the participation of both state companies
and the private sector in the execution of projects under the Master
plan for Acceleration and Expansion of the Indonesian Economic
Development (MP3EI), he said.
government also will improve the investment climate, build
infrastructure, facilitate the development of downstream industries,
offer incentives for businesses and increase the maximum limit of income
exempted from tax to Rp 24 million per year, he added.
Agus said he could understand why some factions in the House of Representatives doubted that the target could be achieved.
minority Gerindra faction, whose spokesman is Fary Djemi Francis, is
among the groups describing the economic growth target as unrealistic.
growth target is too high amid global economic uncertainties. The
Chinese economic slowdown will have an impact on Indonesia. It is
impossible that the country’s economy could grow 6.8 percent,” Fary
He also criticized the government for showing more concern with recording a high economic growth rate than eliminating poverty.
Abdullah, of the PDIP faction, a major opposition party, said the
target was too optimistic and is contrary to the prevailing condition of
the world economy.
“China and India are on the decline, adding to the problem of global economic uncertainties,” Abdullah said.
With poor infrastructure, it would be difficult to boost investment and drive growth, he said.
infrastructure sector could not yet be expected to provide adequate
support for economic development. Ports and roads and other facilities
are vital factors in attracting investment,” Abdullah added.
Awal Muharam, of the Islamic based Justice and Welfare Party (PKS),
claimed the target is realistic, provided that the government could
boost the consumer sector to offset a decline in exports.
economic growth cannot be based solely on consumption.
Consumption-driven growth can be relied on only for the short term,” he
said, adding that growth prompted by consumption is not quality growth.