ID :
16426
Wed, 08/20/2008 - 01:27
Auther :
Shortlink :
https://www.oananews.org//node/16426
The shortlink copeid
GOVT CHALLENGED TO CONTROL INFLATION IN 2009 : KADIN
Jakarta, Aug 19 (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) said that the government's major challenge in 2009 was to take inflation under control owing to the fact that oil and commodity prices in the world market are still difficult to predict until the beginning of 2009.
"If the government is unable to control inflation, the purchasing power of the middle will also drop. At present, domestic demand is still relatively good because the middle class has been able to maintain the level of its purchasing power," Bambang Soesatyo, chairman of Kadin's permanent committee for monetary and fiscal affairs, said here on Tuesday.
He said keeping inflation under control would be a key factor to President Susilo Bambang Yudhoyono's electoral success next year, the more so because the economic growth target had been set at 6.2 percent on the back of domestic consumption and exports of non-oil, mining and plantation products.
"The problem is whether or not we will achieve a good growth that can improve the people's purchasing power, lower the poverty rate and create jobs for both new and old workers," he said.
He said the steps likely be taken by banks in adjusting their interest rates and the legislative/presidential elections next year could serve as a stumbling block that the government had to pay attention to.
"It is difficult to expect a significant expansion in investment because the business climate is not conducive due to increased risk factors," he added.
"If the government is unable to control inflation, the purchasing power of the middle will also drop. At present, domestic demand is still relatively good because the middle class has been able to maintain the level of its purchasing power," Bambang Soesatyo, chairman of Kadin's permanent committee for monetary and fiscal affairs, said here on Tuesday.
He said keeping inflation under control would be a key factor to President Susilo Bambang Yudhoyono's electoral success next year, the more so because the economic growth target had been set at 6.2 percent on the back of domestic consumption and exports of non-oil, mining and plantation products.
"The problem is whether or not we will achieve a good growth that can improve the people's purchasing power, lower the poverty rate and create jobs for both new and old workers," he said.
He said the steps likely be taken by banks in adjusting their interest rates and the legislative/presidential elections next year could serve as a stumbling block that the government had to pay attention to.
"It is difficult to expect a significant expansion in investment because the business climate is not conducive due to increased risk factors," he added.
