VP OPTIMISTIC ECONOMIC GROWTH TO REACH 8 PCT IN 2009

Jakarta, Nov 11 (ANTARA) - The government is optimistic national economic growth will reach 8 percent in 2009 and remain at this level until 2011, Vice President Jusuf Kalla said.
"We believe that if nothing adverse happens, economic growth next year will reach 8 percent and remain at this level until 2011," the vice president said in his keynote speech at a UNDP meeting here on Tuesday.
The vice president said an economic growth rate of 8 percent could be achieved with hard work and development of a system that could reduce fuel oil subsidies.
"Some 30 percent of the state budget is used to subsidize fuel oil consumption at home. Therefore, if we are able to develop a system and technology for development of vegetable oil that could reduce dependence on fossil fuels, the subsidies can be cut," he said.
The vice president expressed hope that the United States and Europe would be able to overcome their financial crisis so that businesses in the two areas would regain their growth and Indonesia could boost its exports to the two regions.
"The current global financial crisis has affected 50 percent of industries in the country because of the drop in demand for Indonesian goods in the United States and Europe. Therefore, we hope that European countries and the United States will soon be freed from the crisis," Kalla said.
According to the vice president, Indonesia's economic growth had improved from year to year so that it reached 6.4 percent after the 1998 crisis.
"After ten years of crisis, we were able to get out of the crisis and improve our economic growth so that it reached 6.4 percent. This is good for us," he added.
In the meantime,Bank Indonesia (BI/central bank) Deputy Governor Hartadi A Sarwono said last week Indonesia's economic growth in 2008 was estimated to eventually stand at 6.1-6.2 percent.
"We estimate it is still possible for the overall economic growth rate this year to reach 6.1-6.2 percent," Sarwono said. ***2***