Jakarta (Antara Bali) - The central bank of Indonesia has predicted that Indonesia's economy will grow at a rate of 5.09 percent this year, and the growth will be 5.2 percent in the third quarter.
The governor of Bank of Indonesia, Agus Martowardojo, said the 5.09 percent projection excludes the value obtained from tax amnesty, a scheme that became applicable from July 2016 and will remain in force until March 31, 2017.
In January-March 2016, Indonesia's economy grew by 4.92 percent, as observed from the national gross domestic product.
The figure decreased in the fourth quarter of 2015, but was better when compared with that in the first quarter of 2015.
According to the governor, the tax amnesty policy encourages economic growth in terms of investment aspect as funds flow to the real sectors.
"We are expecting that the policy will be effective and will lead to an increase in the state revenue," Agus noted.
If the tax amnesty scheme turns out to be successful, he added, the economy¿s impact will be doubled in 2017.
He reminded that the liquidity overflow of repatriated funds should be addressed by establishing priorities to utilize the funds in real sectors. "Because if these funds stay in banks, the tax amnesty benefits will not be optimal," he said.
"The Bank of Indonesia should not allow excessive funds to accumulate. Any excessive funds would cause inflation, and pose a problem in our economy," Agus remarked.
The monetary authority predicted that the current account deficit in 2016 would amount to US$20 billion or 2.2 percent of the GDP.
That amount, though higher than the 2014 level of US$17 billion, is still within the safe band, Agus underlined.
Deficit still occurs due to import of capital goods and financing required to meet development targets, particularly infrastructure construction.
However, Agus continued, repatriated funds could be a turning point and the current account may no longer exist. (WDY)
COPYRIGHT © ANTARA News Bali 2016
The governor of Bank of Indonesia, Agus Martowardojo, said the 5.09 percent projection excludes the value obtained from tax amnesty, a scheme that became applicable from July 2016 and will remain in force until March 31, 2017.
In January-March 2016, Indonesia's economy grew by 4.92 percent, as observed from the national gross domestic product.
The figure decreased in the fourth quarter of 2015, but was better when compared with that in the first quarter of 2015.
According to the governor, the tax amnesty policy encourages economic growth in terms of investment aspect as funds flow to the real sectors.
"We are expecting that the policy will be effective and will lead to an increase in the state revenue," Agus noted.
If the tax amnesty scheme turns out to be successful, he added, the economy¿s impact will be doubled in 2017.
He reminded that the liquidity overflow of repatriated funds should be addressed by establishing priorities to utilize the funds in real sectors. "Because if these funds stay in banks, the tax amnesty benefits will not be optimal," he said.
"The Bank of Indonesia should not allow excessive funds to accumulate. Any excessive funds would cause inflation, and pose a problem in our economy," Agus remarked.
The monetary authority predicted that the current account deficit in 2016 would amount to US$20 billion or 2.2 percent of the GDP.
That amount, though higher than the 2014 level of US$17 billion, is still within the safe band, Agus underlined.
Deficit still occurs due to import of capital goods and financing required to meet development targets, particularly infrastructure construction.
However, Agus continued, repatriated funds could be a turning point and the current account may no longer exist. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2016