Indonesia optimistic to surpass neighboring countries' growth in 2012: minister

Indonesia is optimistic to surpass neighboring countries' economic growth in 2012 with growth of 6.5- 6.9 percent, a minister said here on Tuesday.


Finance Minister Agus Martowardojo told a parliamentary plenary session that the expected growth would surpass Malaysia (5.2 percent), Thailand (4.5 percent), the Philippines (5.0 percent) and Singapore (4.4 percent).


"In order to support such high growth, the government has prepared expansive fiscal policy in 2012. Policy on budget allocation is aimed to support a qualified economic growth, to create jobs and to reduce poverty," he said.


According to Martowardojo, the policy was reflected in budget allocation increase to develop infrastructures, sustainable various programs to alleviate poverty and subsidy for agriculture.


He admitted that Indonesia would face big challenges to achieve the economic growth in 2012.


"Projection of the world's trade volume in 2012 to 6.9 percent from 7.4 percent in the previous year and impact of crisis in Europe should be alerted," he said.


However, Martowardojo said that the external influence faced by Indonesia is smaller than other ASEAN countries such as Singapore and Malaysia.


He said the government has expected sources of the economic growth at a high level.


"Consumption of people and the government is expected to reach 4.8-5.2 percent and 6.0-6.4 percent, respectively," he said.


Investment was expected to grow 10.0-10.4 percent while export and import were expected to reach 14.9-15.3 percent and 18.0-18.4 percent, respectively, said the minister.
(Source:http://news.xinhuanet.com)