Indonesia cuts growth forecast for 2015

Indonesia has revised down its growth projection for this year to 5.2 percent, saying that the figure was the most realistic amid the global economy downturn at present.

Indonesia's Coordinating Minister for Economic Affairs Sofyan Djalil said on Friday that the previous growth target set by the government, previously at 6.6 percent and later revised to 5.8 percent, was considered too optimistic.

"Several countries in the world have revised down their growth targets for this year," Sofyan said in his office here. "The world 's growth rate was now estimated at 2.9 percent from the initial forecast of 3.5 percent. So, a 5.2 percent growth forecast for Indonesia is more realistic."

The minister was optimistic that the country would reach the new rate as the government has initiated several development programs to boost growth, including efforts to raise domestic demands, undertake infrastructure projects and improve the investment environment.

"We cannot rely on external elements because we cannot control them," the minister said, adding that prices of most export commodities to main export destinations have been reducing as most of those countries are also having troubles in their economies.

Indonesian Finance Minister Bambang Brodjonegoro had previously said that the nation may see 5.5 percent growth in the second half of this year. The minister had also revised down the growth target for next year to between 5.5 and 6 percent, from the initial target of 5.8 to 6.2 percent. Endi