INDONESIA-ECONOMY/BUDGET-PRESIDENT Indonesian President sets 5.5 percent GDP growth in 2016

Record ID: 143396

  • Title: INDONESIA-ECONOMY/BUDGET-PRESIDENT Indonesian President sets 5.5 percent GDP growth in 2016
  • Date: 14th August 2015
  • Summary: ****WARNING CONTAINS FLASH PHOTOGRAPHY*** MEMBERS OF HOUSE OF REPRESENTATIVES STANDING FOR NATIONAL ANTHEM WIDODO AND KALLA
  • Embargoed: 29th August 2015 13:00
  • Keywords:
  • Location: Indonesia
  • Country: Indonesia
  • Topics: General
  • Reuters ID: LVAE7PB5XDWJO4BQ1GKLZL78OCUT
  • Aspect Ratio: 16:9
  • Story Text: EDITORS PLEASE NOTE: PART AUDIO QUALITY AS INCOMING
    Indonesian President Joko Widodo unveiled on Friday (August 14) a proposed 2016 budget built on the assumptions that the country's slack economic growth will accelerate next year and the rupiah will be stronger.
    The proposed budget assumes 2016 economic growth at 5.5 percent, Widodo told the members of Indonesian House of Representatives in central Jakarta.
    "The economy growth of 2016 is targeted at 5.5 percent, the condition of the global economy is projected to be better so exports and imports as well as demand for Indonesian products will increase," said Widodo.
    The prediction is below 5.7 percent assumed in the revised 2015 budget, but still optimistic compared to the latest government outlook for this year of 5 to 5.2 percent.
    Indonesia grew about 4.7 percent in each of the first two quarters, and many economists say growth this year will be below 5 percent.
    Widodo, whose government has struggled to disburse funds for roads, ports and power stations, pledged an 8 percent increase to 313.5 trillion rupiah ($22.74 billion) in spending in infrastructure in the hope that it would have a knock-on effect on investment and consumption growth.
    "Infrastructure construction will boost investment growth and domestic consumption," he said.
    This is the first budget set by Widodo after he took office last October.
    As the first Indonesian president to come from outside the military or political establishment, the former furniture businessman won last year's election in large part because he was seen as someone who cared for issues facing ordinary people.
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