A growth of 6.5 percent would not as yet guarantee a better life for the Indonesian people, the observer, M Chatib Basri from state University of Indonesia said in a CIMB Niaga Economic Outlook Conference here on Wednesday.
He said Indonesia needs to grow minimally nine percent in 2015 considering global volatility and future challenges.
"When asked about the target of six to seven percent growth I am convinced we could realize it without government intervention. The problem is the target is not sufficient. We need growth at nine percent levels," he said.
He said if Indonesia could grow at only six to seven percent people would be trapped into a potential poverty because it would not be able to catch up with the emerging markets.
He said because of the large population in the working force category it would be easy for Indonesia to grow up to seven percent. This is because domestic consumption rate is high, he said.
"That is why companies like Astra or Unilever can grow well in the middle of current crisis. So without government efforts we could grow," he said.
To achieve a nine percent growth Chatib said infrastructure had to be improved.
With the settlement of infrastructure problems logistic obstacles that have so far hindered domestic trade would be overcome, he said.
"Look. Why Astra does not want to build a plant here. It is because the logistic cost between regions is far higher than the cost of imports. So, if the problem could be overcome I believe a nine percent growth is not impossible to achieve," he said.
(Uu.H-YH/HAJM/A014)
Editor: Priyambodo RH
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