REPUBLIKA.CO.ID, JAKARTA -- The National Economic Committee (KEN) predicted the Indonesian economy would grow 5.7 percent this year falling short of the target of 6.3 percent set earlier.

KEN chairman Chairul Tanjung told a seminar here on Tuesday the country's economy has slowed down in the past several quarters.

In the third quarter of this year the country's economy grew only 5.6 percent, Chairul said.

"What happens in 2013 is worse than the worst scenario we made in the economic outlook 2013. It turns out that it is difficult to predict what is to come even for only a year," he said.

He said imports have grown faster than exports because of the relatively strong growth of the country's economy amid the global slump.

"As a result Indonesia suffered a trade deficit followed with current account deficit," he said.

He said Bank Indonesia's policy of raising the benchmark interest rate (BI rate) had both advantages and disadvantages.

While it could control inflation and current account deficit, the policy would cause an economic slowdown, he said.

"It seems investors begin to postpone plan to invest waiting until the condition offering good opportunity," he said.

Ikuti Whatsapp Channel Republika