Jakarta, March 27 (NNN-ANTARA) President Susilo Bambang Yudhoyono believed Indonesia's economy could grow by six to seven percent as of 2007 and on, provided that the government and the business world share their duties and responsibilities in a synergy.
"God willing, theoretically and empirically, such growth rate could be reached. It could even be higher," the president said in his welcome speech at the 2007 national leadership meeting of the Indonesian Chamber of Commerce and Industry (Kadin) here on Monday.
The meeting was also attended by several cabinet ministers including Economic Affairs Minister Boediono, Coordinating Minister for People's Welfare Aburizal Bakrie, State Minister for Cooperatives and Small-and Medium-scale Enterprises Surya Dharma Ali, Trade Minister Mari Pangestu and Cabinet Secretary Sudi Silalahi.
According to the president, the sectors which should be improved to reach the economic growth by six to seven percent include the production, consumption and investment as well as the real sectors.
"To develop the business and industrial fields and increase the consumption sector, production of the business quarters should be increased to boost the people's purchasing power," he said.
The efforts to boost the people's purchasing power could be made by the government and the private sector, he said, adding that the government through the fiscal increase in the state budget and
regional budgets could raise the people's real purchasing power like the increase in the civil servants' salaries in 2005 and 2006.
The government is planning to further increase civil servants' salaries in 2007.
"Through the State Budget and Regional Budgets, the government could also lower the cost of education, healthcare and public services, to enable the people to spend their income more on goods and services of the private sector," he said.
He also said that under the current fiscal policy, the government could create job opportunities through its programs on infrastructure development in the sectors of transportation, agriculture, education
and healthcare, which were expected to sharpen the competitive edge and speed up production processes.
The head of state also said that the policy to increase the people's purchasing power would be focused on the creation of job opportunities to raise the people's income.
Meanwhile, Kadin's General Chairman MS Hidayat said 2007 was a momentum for the government to materilize its economic growth targets.
"The president's speech on the economic growth by six to seven percent is rational, but there are a number of barriers to implement it, which must be solved," he said.
He said if in 2007, the government and the private sector could materialize the economic growth, the target to reach the per capita income of US$6,6000 in 2010 could be met.
He said that measures the government had taken to overcome the obstacles include the abrogation of about 200 regional regulations for failure in supporting the business sector.-