The World Bank (WB) has lowered its forecast for Indonesia’s economic growth this year from 6.2 percent to 5.9 percent as global economic conditions have yet improved and investment dropped.

This is the second adjustment made by the WB, Indonesia’s Finance Minister Chatib Basri said at a press conference on July 2, noting that this makes the country aware of difficulties it is facing and requires the Government to take extra efforts and strengthen its determination to weather them.

Earlier, the WB, an international financial institution which provides loans to developing countries, cut its economic growth forecast for Indonesia from 6.3 percent to 6.2 percent.

According to the Minister, the Government will take anticipatory measures against global economic pressures that include accelerating structural reform and improving budget policies to achieve this year’s preset economic growth goals.
There will still be volatility until the end of the year due to a slowdown in domestic demand and continued pressures on the prices of commodities as well as export revenue, WB Chief Economist in Indonesia Ndiame Diop said.

Indonesia must make serious assessment of the national economic slowdown in the first quarter to put forth appropriate measures to secure its macro-economic stability, Diop said.-VNA