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http://en.republika.co.id/berita/en/national-politics/17/01/14/ojs38x414-household-consumption-is-key-to-achieving-economic-growth-in-2018-bappenas


Sabtu , 14 Januari 2017, 23:53 WIB

Household consumption is key to achieving economic growth in 2018: Bappenas
Red: Reiny Dwinanda


Republika/ Yasin Habibi
The head of Indonesia's National Development Planning Agency (Bappenas), 
Bambang Brodjonegoro


REPUBLIKA.CO.ID, JAKARTA -- The head of Indonesia's National Development 
Planning Agency (Bappenas), Bambang Brodjonegoro, has said household 
consumption and inflation will be the key to achieving higher economic growth 
in 2018. "To ensure consistent growth, the best recipe is to maintain the rise 
in household consumption, while keeping the growth at five percent or more," 
Bambang said as he provided directives at a Bappenas consultation gathering in 
Jakarta on Friday.

According to Bambang, household consumption will rise only when consumers have 
confidence about economic outlook and spend money. He stressed that the central 
and regional governments should be able to ensure a perception of a 
normally-running economy so that people are willing to spend money. "If people 
spend money (to shop), it means household consumption is increasing, which 
boosts economic growth. When people shop, retail trade increases, large trade 
also rises, and the economy registers growth," explained Bambang.

Meanwhile, inflation itself should be kept as low as possible. According to 
Bambang, controlling inflation was the most effective way of maintaining 
purchasing power. If inflation is allowed to erode purchasing power, he added, 
the growth in household consumption will also be affected.

When it comes to inflation itself, three factors can have an impact. These are 
a rise in food prices, change in government-set (administered) prices and core 
inflation. As far as core inflation is concerned, it is the task of Bank 
Indonesia to control the availability and demand for money. The administered 
price falls under the central government's authority.

Bambang reminded that at times, two aspects can be controlled but food prices 
can become volatile. As a result, inflation seems higher than it should be. 
"This becomes a matter of concern in the region. Of course, there are no 
specific instances in the region about dealing with inflation, and response 
should be coordinated. But it needs to be consistently ensured that inflation 
should be kept as low as possible by maintaining food price stability and meet 
the people's food needs," Bambang concluded.

Sumber : Antara

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