"If you ask whether the 5.3 percent target is achievable, I think it is not something that is difficult to achieve," Darmin Nasution stated.Jakarta (ANTARA News) - Coordinating Minister for Economic Affairs Darmin Nasution said he is optimistic that the economic growth target of 5.3 percent in 2017 could be achieved by optimizing the performance of the investment sector.
"If you ask whether the 5.3 percent target is achievable, I think it is not something that is difficult to achieve," Nasution stated in Jakarta on Wednesday.
Nasution noted the government could count on the proposed investment actually being realized as the 2017 begins once the contracts for the procurement of infrastructure projects, such as highways and power plants, are signed in 2016.
"At least by November or December, or by early next year, actual investment will be made. That will be recorded as having been realized and will have an impact on economic growth," he added.
However, Nasution reminded that the investment is not yet adequate, because infrastructure development could last longer than initially estimated.
"The realization of investment can be slow because these projects are generally long term in nature, such as toll roads and power plants. The construction can start only after two or three years," he pointed out.
Besides investments, Nasution observed that the government could still rely on domestic consumption to support economic performance by ensuring that people retain their purchasing power and by keeping inflation under control.
Nevertheless, global economic challenges could also pose an obstacle that could hamper the potential for economic growth in 2017 because the turmoil in developed and developing countries has disrupted the performance of the national trade sector until now.
"There seems to be an upward movement of exports and imports, but we cannot do much. We realize this as a formidable challenge before the recovery of global economic growth," Nasution conceded.
Nasution believed the government can solve a variety of domestic and global challenges because it has taken certain steps in anticipation, such as the issuance of economic policy packages which will start yielding visible results in 2017.
"We believe that all this could enhance the economic growth, but not too significantly," he underlined.
Overall, the government expects the economic growth in 2017 to have a qualitative improvement, thanks to better human resources, improved productivity and equitable economic development.(*)
Editor: Heru Purwanto
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