Govt Projects GDP Per Capita to Reach $5,000 in 2014
In his annual national speech, President Susilo Bambang Yudhoyono said that Indonesia’s projected GDP per capita will likely reach a new milestone by the end of 2014 — with a commensurate reduction in the country’s poverty rate.
“In 2004, our GDP per capita was $1,177, and in 2009 it increased to $2,299,” he said. “The figure kept on rising to $3,592 last year. By the end of 2014, our GDP per capita will reach $5,000.”
“Our economy grows at a rate of 5 or 6 percent, business sectors grow and we can also decrease unemployment and poverty,” he said. “The state’s income will increase, and we can keep expenditure and the fiscal deficit below 3 percent.”
Official data show 11.37 percent of Indonesians lived in poverty as of March 2013. In 2004, the figure was 16.6. The unemployment figure fell from 9.89% in 2004 to 5.92% in February of this year.
Yudhoyono gave examples of successful government programs that had contributed to the nation’s prosperity. “The government has carried out many programs to support the people,” he said. “We have financial-assistance programs for the poor, senior citizens and people with disabilities. We have also carried out rice-assistance programs, family programs and operational assistance for schools.”
Arief Budimanta, member of Commission IX in the House of Representatives, said the increase in the price of subsidized fuel would, however, likely push more people into poverty.
“The current [poverty] rate is 11.3 percent and it may increase to 12 percent,” he said. “Inflation has been crazy these past few months.”
Arief said that the government usually only relied on National Program in Society Empowerment and the Direct Financial Assistance stimulus in fighting poverty, but infrastructure programs and small-middle economic programs had yet to create a significant impact.