REPUBLIKA.CO.ID, YOGYAKARTA -- A commissioner of PT. Bank Central Asia (BCA) Cyrillius Harinowo said he is optimistic the country would reach the economic growth target of 5.8 percent set in the 2015 state budget.

The economic growth would be driven by the growing connectivity and improvements in the performance of the manufacturing sector, Harinowo said here on Friday.

"I even am convinced that the target would be overshot to reach 6 percent," he said in an unofficial discussion on "2015 Economy Outlook" here.

He said President Joko Widodo's sea toll road project, which is in fact already underway with the concept of Pendulum Nusantara (archipelago pendulum) would have significant impact in slashing logistic cost.

Sea toll road project was first proposed by Joko Widodo during last pre election campaign

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The idea, which quickly gained popularity is to modernize and facilitate sea transport between the western region of the country and the more backward eastern region.

"Currently we have to pay US$2,000 for logistic cost from Jakarta's Tanjung Priok to Sorong in Papua. The shipping cost would be reduced significantly with the pendulum," he said.

The price of goods especially essential goods would be cheaper and the purchasing power of the consumers would increase, he said.

Expansion of connectivity would certainly improve the performance of the industrial sector resulting in recovery of export performance, he said.

He said though still looks being in the doldrums, the manufacturing industry would revive in 2015 with the emergence of supporting industries in addition to improvement of infrastructure and growing investment.

"We would be able to cut imports of basic materials soon. And now the banking sector is active in encouraging industrial development to produce import substitute products," he said.

The confidence of investors in the government would boost direct investment in the real sector making it easier for industrial players to launch expansion, he said.

He said the automotive sector is the most prospective with car sales expected to reach to million or three million units a year in the next several years.

"I believe we would become an Asian giant in the automotive industry," he said, adding in the past several years, car sales averaged 1.2 million units annually.

He said investment would also improve the performance of strategic industries like aviation industry and information technology industry.

"We are preparing the design of N 219 and R 80 aircraft that would be our pride. In addition, LAPAN and PINDAD are starting to build rockets," he said.

Commenting on the impact of the government's plan to raise the prices of subsidized oil fuel (BBM), he said the social protection program with card package and electronic cash would be effective and hit the right target.

"With that mechanism (e-money), compensation would be used by the people for basic need instead of secondary needs," he said.

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