Chinaa's Slow Growth May Impact Indonesian Exports

Jakarta, April 8 (Antara) - The Financial System Stability Coordination Forum held a meeting here on Monday night to discuss China`s economic slowdown, which might impact the Indonesian economy. "The current condition is good and stable. Yet, we have to stay alert for China`s economic slowdown and the global downside risk," Vice Finance Minister Bambang Brodjonegoro said after the meeting. Also present at the meeting were Finance Minister Chatib Basri, Bank Indonesia Governor Agus Martowardojo, Bank Indonesia Senior Deputy Governor Mirza Adityaswara and Deputy Chief of the Commissioner Council of the Financial Service Authority Rahmat Waluyanto. Bambang noted that while the United States, European and Japanese economies are still in a process of recovery, the Chinese economy is slowing down and drawing special attention from the Indonesian government. "I think that China`s economic situation is not that bad as the deliberate slow growth is aimed at guarding its own economy. China has shifted from investment-oriented to domestic consumption-oriented development," he said. The slow growth may have a direct impact on Indonesia`s exports as China is one of Indonesia`s main export destinations, he said. He predicted that the world`s second largest economy will continue to import large quantities of goods to meet its domestic consumption. "China`s imports will remain high," he said. The Chinese economy registered a flat growth of 7.7 percent last year, maintaining its slowest expansion for the second year in more than a decade. In its April release of the East Asia and Pacific Economic Update, the World Bank said that it expected growth in China in 2014 and 2015 to be at 7.6 percent and 7.5 percent, respectively.