News Room - Business/Economics

Posted on 11 Aug 2008

RI economy to improve in 2009: Economist

The Indonesian economy in 2009 is expected to be in a better shape than in 2008, an economist said.

A number of economic institutions, including the International Monetary Fund (IMF,) had projected the Indonesian economy to pick up next year, Sunarsip of the Fiscal Policy Board at the Finance Ministry said on Saturday.

"The United States is already aware of the mistakes in their financial system. They are taking a number of steps to restore confidence in their market. US public consumption has also begun to recover," he said.

Moreover, the recent US economic slowdown did not have a significant impact on Asian economies including Indonesia, he said.

He said global crude price hikes would pose a serious threat if they went beyond expection in 2009.

Asked whether or not the government would slash its spending next year, he said it would continue to pursue the principles of efficiency.

"It is likely the efficiency will affect budget items which have nothing to do with capital expenditures but with operational aspects," he said.

The government expected adequate economic growth next year to improve the people`s living standards and create more jobs, he said.

"We will continue to use budget funds as efficiently as possible without disturbing economic growth," he said.