News Room - Business/Economics

Posted on 09 Jan 2008

2007 economic growth highest since crisis

Bank Indonesia (Central Bank) Governor Burhanuddin Abdullah said that last year`s Indonesian economic growth predicted to reach 6.3 percent, was a record high since the 1997 economic crisis.

He told a press conference on the results of a BI board of governors meeting in Jakarta on Tuesday that the 2007 economic growth was particularly triggered by the consumption and export sectors and the support of the improving investment climate in the country.

"The progress is quite significant, especially considering that in 2007 our economy faced a serious challenge posed by the subprime mortgage crisis in the United States which had disrupted the global money market and raised the world oil price," he said.

He also said that last year`s economic growth was of a better quality than that in 2006, in terms of a lower unemployment rate and drop in absorption of workers.

In the meantime in 2008, amid global uncertainties his side remained optimistic that Indonesia`s economic growth would remain at 6.2-6.8 percent.

Meanwhile, Economic Research and Monetary Policy Director of the Indonesian central bank Made Sukada said that last year`s economic growth was also triggered by the favorable situation in Jakarta and environs, Banten, Bali as well as Nusa Tenggara provinces.