Indonesia’s growth to survive despite flooding

Indonesia is expected to secure its growth target this year despite severe flooding that hit several areas across the country as temporary price increases persisted this month, a senior official said here on Friday.

The fact the current flooding has disrupted economic activities in the capital city and the distribution of goods and services across the country would not significantly affect the growth target this year as it would not last longer, said Coordinating Minister for the Economy Hatta Radjasa.

Indonesia saw severe flooding this month due to torrential rain in several parts in Java, cutting main distribution routes from western to eastern tips in the country’s key economic island. The ongoing flooding was reported to have killed dozens of people and displaced thousands of others in Java. Massive flood also occurred in North Sulawesi province and claimed dozens of lives.

Business associations have reported losses of billions of rupiah due to increase in transport cost. Indonesian finance minister said earlier that price rise caused by transportation hardship may push up monthly inflation like last January when a 1. 03 percent hike was recorded.

The Indonesian government has set this year’s growth target at 6 percent.

Xinhua

 

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