Economic Growth In Indonesia Will Improve: Vice President

Jakarta, May 21 (Antara) -- Vice President Jusuf Kalla convinced representatives of Asian countries at a seminar held by Nikkei in Japan on Thursday that Indonesia will perform better in the second quarter after posting disappointing results in the first. "In the second quarter, it will be better," he said, as reported by asia.nikkei.com. Kalla expressed optimism that the results of various infrastructure projects in the country will reflect this improvement. In the first quarter of 2015, the Indonesian economy grew only at 4.7 percent. Several quarters considered the decline a result of the cut in fuel subsidy that had eroded public consumption, in addition to the simultaneous drop in the prices of various commodities in the world. Together, they had affected the country, which relies much on its natural resources. Vice President Jusuf Kalla affirmed that Indonesia will transform its economy from one dependent on natural resources to a production-based one that has more additional value. "We may not be able to become a high-earning state just by planting oil palm trees, mining coal or pumping natural gas. We have limits with regard to how much the earth can support us," he remarked. He added that Indonesia needs investment from foreign companies in the processing and manufacturing sectors. Indonesia's Minister for National Development Planning/Head of the National Development Planning Board Andrinof A. Chaniago claimed that the assumption of 5.7 to 6.2 percent macroeconomic growth in 2016 was in the line with the real economy, taking into account the impacts of global pressures. On the sidelines of a seminar here on Wednesday, he stated that the 5.8 to 6.2 percent growth set for 2016 was, indeed, different from the target set in the national mid-term development plan for the 2015 to 2019 period, which is 6.4 to 6.6 percent. Chaniago believes that infrastructure spending will contribute significantly to economic growth in 2016. The spending will be prioritized by the government as it will support growth in other sectors.