REPUBLIKA.CO.ID, JAKARTA -- Minister of National Development Planning, Andrinof Chaniago, said the government lowered 2016 economic growth target for trying to be realistic with the current conditions. Economic growth next year is targeted to be in the range of 5.8 to 6.2 percent.

Andrinof admitted that assumption is lower than that specified in the National Medium Term Development Plan (RPJMN) from 2015 to 2019 by 6.4 to 6.6 percent.

"The annual assumption, of course will be better to see the real situation. So, it is no problem," said Andrinof, on Wednesday, May 20.

Andrinof said the global economic slowdown caused the government to set a lower target than RPJMN.

"But it's only a basic assumption, it could be increased further if the global economic outlook is improving," he said.

Minister of Finance, Bambang Brodjonegoro admitted the target is lower than that stipulated in the National Medium Term Development Plan (RPJMN) 2015-2019. But, still higher than the growth assumptions this year which targeted 5.7 percent.

Lack of improvement in global economic conditions such as falling commodity prices and the risk of a strengthening dollar, making the government will rely more on infrastructure development activities to pursue economic growth.

"Infrastructure development in the various regions will be the main drivers of economic growth. Thus, more reliant on domestic factors," he said when delivering the Macroeconomic Framework and the Principles of Fiscal Policy in the House of Representatives (DPR), on Wednesday, May 20.

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