Outlook: Indonesia's Economy Slowing Down

VIVAnews – The government plans to revise macro assumption in the 2012 State Budget Draft (RAPBN). In this assumption, Indonesia’s economic growth will be looked over from 6.7 percent to 6.5 percent.

“The government sets the outlook at 6.5 percent,” said Minister of National Development Planning, Armida Alisjahbana, on Tuesday, Feb 28. 

Another macro assumption that will be redrafted by the government is the 2012’s inflation rate of 7 percent. 

Provided the projection, she said, the government must compensate the people with certain packages to alleviate the direct impact of the coming subsidized fuel pricing. 

“We're hoping that this year’s inflation will be low,” he said. 

The government still designs the most possible compensation for the people. It is planned that the budget for public service obligation (PSO) will be increased. Moreover, the government will prepare scholarships for children of poor families.