GDP growth, currency stability both priorities: Indonesian finance minister

Indonesian Finance Minister Bambang Brodjonegoro said on Tuesday that both the country's economic expansion and currency stability are priorities and can be achieved at the same time.

The statement was made amid pressure to the central bank to impose loosening to prop up economic growth, but the lender is cautioned over the prospect of the U.S. Federal Reserve's rate hike plan.

"Both of them (GDP growth and currency stability) are important and can be achieved together," he told Xinhua at the presidential palace in Botanical Garden Park.

The central bank has been cautioned over the prospect of the U.S. Fed. Reserve rate hike plan.

But, Minister Brodjonegoro said that if the policies were directed to boost growth and keep rupiah stability, the risks could be countered.

"The risks (of the policies) can be minimized," he said.

Indonesia witnessed subdued economic growth of 4.71, 4.67 and 7.3 percent at the first three quarters respectively with January-to-October inflation 2.16 percent, according to the national statistic bureau.

However, the country witnessed current account deficit gap of 1.86 percent of the GDP at the third quarter or about 4 billion U.S. dollars from the previous quarter of 1.95 percent of the GDP or 4.2 billion U.S. dollars, according to the central bank.

Weakening of rupiah against U.S. dollars failed to raise the country's export as most of the raw materials for manufactured products are imported, in which the import's cost is up.

Rupiah has plunged to the lowest since 1998 against the greenback, and it was traded at 13,853 on Tuesday, according to the central bank website. Endit