Indonesian Coordinating Minister for Economic Affairs Darmin Nasution (Source: Antaranews)
Jakarta (VNA) – Indonesia’s economic growth was 5.02 percent in 2016, below the government’s expectations, local news agency Antara quoted Indonesian Coordinating Minister for Economic Affairs Darmin Nasution as saying on February 7.

As economic growth fell short of expectations, it is necessary to cut budget spending, stated Nasution.

Earlier, the Central Statistics Agency of Indonesia reported that the Indonesian economy expanded 4.94 percent in the fourth quarter of 2016, bringing national growth to 5.02 percent for the whole year, a rise of 0.14 percent over 2015.

The World Bank predicted that Indonesia’s GDP would grow 5.3 percent in 2017, higher than previous years due to an increase in private investment thanks to monetary policies in 2016 and an improved investment environment.

The bank also forecast that private spending in Indonesia will increase this year due to low inflation and the stable price of domestic currency.

Nasution stressed that the Indonesian government has much to do to tackle inflation in 2017.-VNA