Indonesia's Economy Stable In 2014

Jakarta, Jan 21 (Antara) - Indonesia will enjoy economic stability in the political year 2014, with economic growth estimated to reach around 5.76 percent, claimed Hatta Rajasa, Indonesia`s chief economic minister. "The successful implementation of the general elections in 2004 and 2009 has proven that Indonesia has matured as a democracy," he stated at an Indonesia Investor Forum seminar held here on Tuesday. He explained that the growth in 2014 will be propelled by domestic and external conditions, which will still be favorable, despite the lingering risks of global uncertainty. He also added that the political year 2014 will even help to boost the real sector and the economic growth of its citizens, as the domestic spending is expected increase. "The buying power of our middle class is increasing and is one of the main determining factors driving our growth," he remarked. The fluctuating global economy will certainly have a negative impact on the country`s economy, but the Indonesian government has adopted various measures to curb its impact, he added. The measures include increasing the government spending in the first and second quarters. It also lays emphasis on maintaining the quality and stability in the prices of staple food commodities in order to curtail inflation and reduce poverty. The government also plans to increase investment competitiveness by improving the infrastructure and connectivity in order to reduce the logistic cost from 14.08 percent to 10 percent in 2015. He also explained that the government will stop the exports of primary energy sources and develop downstream industries by consistently halting the exports of raw materials until 2016.