BI: Economic growth next year toward lower limit

REPUBLIKA.CO.ID,  JAKARTA -- Bank Indonesia (BI) predicts economic growth in 2015 may be closer to lower limit target of 5.4-5.8 percent. Deputy Governor of BI Hendar said plenty challenges waited next year despite recovery of global economy.

"Indonesian economic condition next year will be doing well as government took a bold move by raising fuel price," Hendar said on Thursday, December 4.

However, economic condition also depends on how government reallocate the budget from subsidized fuel. Government targets economy to grow by 5.8 percent in 2015 State Budget.

Economist at Universitas Indonesia (UI) Suahasil Nazara said Indonesia could reach the target as long as government committed to build infrastructure. An increase on investment in infrastructure can raise Gross Domestic Product to 12 percent, in which Indonesia needs to be middle income country.

Nazara demanded government to tackle infrastructural crisis on hydro resources. A decline on rice production is due to bad irrigation management.