BI: economic growth in first quarter quite good

Jakarta (Antara News) - Bank Indonesia (BI) considered the growth recorded at 5.97 percent in the first quarter this year quite good and reasonable.

"The 5.97 percent growth was quite good. To BI that has set the target at six percent the growth is quite good and reasonable," deputy governor of the central bank, Aslim Tadjuddin, said here on Tuesday.

He said however that the economy should grow more than that (5.97 percent) in order to create employment and reduce poverty.

"The government`s target is 6.3 percent. If they wish to create employment they must not be satisfied with just fulfilling the target," he said.

The National Bureau of Statistics on Tuesday announced the country`s economy grew by 5.97 percent in the first quarter this year compared to the same period last year.

Compared to the fourth quarter of 2006 the country`s gross domestic product in the first quarter this year rose two percent, the head of the office, Rusman Heriawan, said.

Asked on when capital inflow into the country would end Aslim Tadjuddin said none could predict when it would end.

"It is a global phenomena and it happens in almost every emerging market," he said.

He said it would continue to happen so long as return on earning was still there.

Asked if Indonesia was ready in case of a reverse he said it was and there was nothing to worry about.

"Our foreign exchange reserves are more than enough so that there is nothing to worry about," he said. (*)
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