Jokowi Sets Target Of Economic Growth At Seven Pct

Jakarta, Aug 22 (Antara) - President-elect Joko "Jokowi" Widodo has set a seven percent economic growth target for 2014 to 2019, according to Akbar Faizal of the Jokowi-JK Transitional Office. "To achieve the target, we need infrastructure investment worth at least Rp6,500 trillion," Faizal, the transitional office`s deputy in charge of infrastructure, public housing and transportation, said here on Friday. He explained that 25 percent, or Rp1,638 trillion, of the money needed for the infrastructure investment would be funded by the State Budget (APBN). The remaining 75 percent must be collected from other parties, such as state-owned enterprises and private companies. Indonesia`s economic growth over the past five years has been five percent, with the budget allocation for infrastructure development hovering at four to five percent of the Gross Domestic Product (GDP), Faizal said. Meanwhile, the growth rate of Indonesia`s infrastructure investment was considered low, compared to India, which has reached seven percent of its GDP since 2009, while China was at nine to 11 percent in 2005. The development of infrastructure is vital for Indonesia`s economic growth because it has an effect on all economic activities, he added. Therefore, Jokowi and his running mate M Jusuf Kalla will take a new approach in the management of the nation`s infrastructure, according to Faizal. Jokowi and Kalla will also work to boost productivity and competitiveness at the national and international levels. The next government will seek to increase electricity by at least 35 thousand MW, and construct two thousand kilometers of new roads. It will also build or renovate 10 seaports and airports, 10 new industrial zones and housing complexes for workers, build five thousand traditional markets, and modernize old markets.