Finance Minister Chatib Basri says he remains optimistic that economic growth in 2014 will stand at 5.8 to 6.1% even though the World Bank (WB) has not revised its forecast for the country's economic growth, which it set at 5.3%.
“What did the WB's forecast look like last year? I think our forecast is much more accurate, that our economy will grow between 5.8% and 6.1%,” he said after speaking at the 2014 Indonesia Summit in Jakarta on Wednesday, as quoted by Antara news agency.
On Tuesday, the WB revised its growth forecast for the global economy for the first time in three years to 3.2% from 3% in 2014. It said such global growth might occur as the easing of austerity policies in advanced economies, such as Japan, the United States and European countries, supported their recovery from the global financial crisis.
Despite a revised growth forecast for the global economy, the WB did not revise its forecast for Indonesia.
The WB also projected that East Asia and the Pacific's economy would grow by 7.2% in 2014, as in the previous year. It said East Asia and the Pacific's economy was still affected by the global financial crisis so that this year, the region's economy would grow at the same rate as in 2013.
Bank Indonesia (BI) projected that national economic growth in 2014 would be closer to the lower level of growth forecast of between 5.8 and 6.1% in line with the improved global economy.
However, BI Governor Agus Martowardojo has voiced optimism that 6% economic growth could still be achieved. “It's still possible to reach the middle range of the target,” he said.