Indonesia needs $426 bln in investment between 2004 and 2009

Jakarta (Antara News) - Indonesia needs investment of 426 bln usd between 2004 and 2009 if is to hit its poverty reduction target, according to the chairman of the government's Investment Coordinating Board, Muhammad Lutfi.

Lutfi told the World Economic Forum on East Asia here that the government aimed to reduce the number of Indonesians living in poverty to about 17 mln in 2009 from close to 56 mln today.

"In order to reach this, the Indonesian economy needs to grow around 6.6 pct average. And in order to get 6.6 pct average it needs investment around 426 bln usd from 2004 to 2009," he was quoted by AFP as saying.

Government spending in the world's fourth most populous country will account for only a fraction of that 426 bln usd, he said.

"Because of that, it needs to change its mindset. The government needs to change its mindset. Indonesia will be a government that is pro-business," he said.

"Economic growth will create jobs, then these jobs will fight poverty, and with fighting poverty we will deliver prosperity and that will be the essence of democracy," he said.

The government is aiming for economic growth of 6.3 pct this year. In the first quarter it expanded by 6 pct year-on-year which, Lutfi said, had beaten all expectations. (*)
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