JAKARTA: The government has projected that gross domestic product (GDP) growth will reach a high level this year on the back of a set of policies, namely flooding the banks with liquidity, government spending and a consumer stimulus.
Finance Minister Purbaya Yudhi Sadewa said the full-year GDP growth this year was projected to hover between 5.6% and 6% despite the likelihood of a slowdown in the second quarter that he forecast would be “not far from 5.4%”.
“But I’m sure that the second half growth will be better because we will firmly coordinate with the central bank to ensure that all engines of growth are functioning,” said Purbaya on Monday.
The coordination with Bank Indonesia (BI) included “ensuring that liquidity in the financial system is adequate” to accommodate higher growth, said the minister in a press conference held after the conclusion of the Financial System Stability Committee meeting.
Since becoming chief treasurer, Purbaya has been of the opinion that the key to higher growth is providing more liquidity, to the extent that he moved hundreds of trillions of rupiah of the state’s excess cash, typically lodged with BI, to deposit accounts in state-owned banks.
The latest stimulus the government will deploy is for electric cars and motorbikes that Purbaya said the government would announce within the upcoming fortnight. — The Jakarta Post/ANN
