RI To Catch Up With China In Economic Growth

Pekanbaru, Riau, April 24(Antara) - Indonesia will catch up with China in economic growth in several years to come, Minister for Cooperatives and Small and Medium Enterprises Syarief Hasan said. Last year Indonesian economy expanded 6.3 percent and this year the country`s economy is expected to grow 6.6 percent, Syarief said here on Tuesday quoting the U.N. Social and Economic Commission for Asia Pacific (ESCAP) as predicting. Meanwhile, the UN ESCAP predicted a moderate growth of 7.8 - 8 percent for the Chinese economy this year, he said when officially naming the regency of Kampar in Riau as a National Cooperative Regency. World Bank as well as the International Monetary Funds, however, have revised down their predictions for the Indonesian economic growth on protracted global crisis. Indonesia has taken a bigger pace with economic growth rising 3 percent points in a year as against China`s 2 percent points, he said. "That means Indonesia could catch up with China in a few years to come if the country could grow with a consistent pace," he said. He said the strong and steady growth has attracted foreign investors to do business in a number of areas in the country. In fact Indonesia, the second fastest growing economy after China, has become one of the favorite investment destinations in the world, he said. International rating agencies have given an investment grade for Indonesian foreign debts. The investment sector has become of the driving motors for the country`s economic growth beside consumption sector and exports. Exports, however, have been in the doldrums lately leaving a deficit for the first time in many year in the country`s trade balance. Despite the setback, Syarief expressed optimism about the economy describing the progress made so far as a big success. "The achievement is thanks to the success recorded by the government in 8 years under the leadership of President Susilo Bambang Yudhoyono," the executive general chairman of the ruling party said.