Indonesia's Growth May Stand Below 5.1% in 2017: Think Tank

Dian Ihsan Siregar    •    28 November 2017 17:01 WIB
indonesian economy (en)
Indonesia's Growth May Stand Below 5.1% in 2017: Think Tank
Illustration (Photo: MI/Galih Pradipta)

Jakarta: The think tank Center of Reform on Economic (CORE) Indonesia has predicted the country's gross domestic product (GDP) growth may reach below 5.1 percent in 2017.

"It will be less than 5.1 percent. It will be slightly below 5.1 percent," CORE Indonesia economist Hendri Saparini said in South Jakarta on Tuesday afternoon.

"At first, we predicted 5.2 percent growth. After mid-year review, we predicted 5.1 percent growth," she added.

The slower than expected growth is mainly influenced by rising administered prices. It is also affected by lower subisidy funds, 

"We believed that confident that the slower household spending growth is not caused by the shift from offline to online. We understand that the limited growth sources is mostly caused by rising administered prices," she explained.

Indonesia's economic growth target was increased to 5.2 percent in the revised 2017 state budget. The country's economic growth target was set at 5.1 percent in the main 2017 state budget.