Bank Indonesia (BI) Governor Burhanuddin Abdullah said Monday the central bank is optimistic the economy will grow by more than 6 percent this year due to a robust lending growth.

"Apart from that, with the state budget realization rate expected to improve in the thirdand fourth quarters, economic growth is likely to exceed the figure," Burhanuddin said following a meeting of the bank's board of governors on Monday.

The meeting agreed that the economy would perform better in the second semester, he said.

The economy in the two previous quarters was on the right track and it would continue to expand during the rest of the year, he said.

He believed full-year inflation rates would hit the central bank's inflation target of 6, plus orminus 1, percent for 2007 and of 5, plus or minus1, percent for 2008.

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jakarta post

Labels: Bank, Indonesia, Internet News, Market, Money

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Indonesian domestic product industries are losing the competition against China's imported goods in the domestic market.

The goods from China which enter Indonesia are export remainders.

Cyrillus Harinowo, BCA's Independent Commissioner, said most of China's goods in Indonesia are export goods remainders.

“So the prices are much cheaper,” he said during the “Dragons at Your Door: China's Position in the World Trade Course and How Indonesian Entrepreneurs Response China's Excellence” discussion yesterday (21/5).

Almost all of Chinese exports to Indonesia are export product remainders sold at a very low price.

It is estimated that Chinese products that enter Indonesia amount to 10 percent of China's total exports.

Cyrillus asked that domestic producers make goods which can compete with China-made products.

This is because tariff and non-tariff impediments for restraining the export goods remainders are also not effective.

“It's difficult to face such goods,” said Cyrillus.
Imposing a 100 percent import duty, he said, would not influence the abundance of Chinese products.

The reason for this is that Chinese products will still be cheaper than the normal prices on the international market.

Cyrillus suggested that producers group together to produce medium quality products in order to face the invasion of Chinese products.

This is because Indonesia can export more natural resources products especially energy source and agriculture products that China does not have.

The University of Indonesia's Chinese Study Center Head, Ignasius Wibowo, said that productivity of workers in China is very high, so China can produce cheap products.

“No bureaucracy impediments and production costs are much cheaper. China has managed to build industrial centers,” he said.

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Labels: Bank, Indonesia, Internet News, Market

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