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INDONESIA CAN ACHIEVE 6.2 PCT ECONOMIC GROWTH IN 2006: GAPMMI.
JAKARTA, Nov 1 Asia Pulse - The Association of Indonesian Food and Beverage Producers (GAPMMI) believed that Indonesia's economic growth may reach 6.2 per cent in 2006, considering that in that year the government will build infrastructure to create more job opportunities which, in turn, would increase purchasing power and industrial performance.
These remarks were made by GAPMMI general chairman Thomas Dharmawan in Jakarta on Monday when commenting on the 2006 Draft State Budget which assumed the country's economic growth at 6.2 per cent, the inflation rate at eight per cent, the exchange rate of the rupiah at Rp9,900 per US dollar, and the price of oil at US$57 per barrel.
"In fact there is no direct link between the State Budget and the business world," Thomas said.
But he added that under the Draft State Budget assumption, the government at least has a reference in controlling the inflation which has a strong effect on credit interest rates.
"We hope the inflation could be checked, if possible lowered compared to that in 2005, so that the credit interest rate could also be lowered enabling businesses to move more freely," he said.
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Source: HighBeam Research, INDONESIA CAN ACHIEVE 6.2 PCT ECONOMIC GROWTH IN 2006: GAPMMI.