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Indonesian President Stresses Domestic Consumption Key to Spur Growth
Source: news.xinhuanet.com
Source Date: Tuesday, November 13, 2012
Country: Indonesia
Created: Nov 20, 2012

JAKARTA, Nov. 13 (Xinhua) -- Indonesian President Susilo Bambang Yudhoyono emphasized Tuesday that domestic consumption is the main driver of the country's economic growth and that export-oriented economic style was not suitable for Indonesia.

"Indonesia's economic growth is dominated by domestic consumption, so Indonesia doesn't need to follow the foreign economic strategy which is apt to export-orientation," President Yudhoyono said here in Indonesia's National Economic Committee Tuesday, as quoted by Indonesia's kompas.com.

Indonesia's rapid economic growth over the past few years had turned middle-class households richer. With a population of about 240 million, middle class comprises 60.9 percent of Indonesians in 2011, according to a survey by Indonesian central bank.

Data released by Indonesia's Central Statistics Agency (BPS) last week shows the Southeast Asia's largest economy grew 6.2 percent in the third quarter thanks to strong domestic consumption despite the global economic slowdown.

Yudhoyono said countries like China, Singapore were the model of export-orientated economies, relying on huge trade surpluses to get economic developed, it is not necessary for Indonesia to follow their style.

Unlike its neighboring countries, Indonesia's economy is driven by domestic consumption, which accounts for almost 60 percent of the country's overall economy.

Strong domestic demand helps provide Indonesia with some protection against international fluctuations in commodity prices and demand, according to analysts. "Besides development of domestic market, Indonesia also needs to develop and implement the Acceleration and Expansion of Indonesia's Economic Development Master Plan (MP3EI) to fuel the economic growth," the president added.

Indonesia unveiled the ambitious blueprint MP3EI last year, aiming to drive the country to be one of the world's ten biggest economies by 2025 with GDP to reach 4.5 trillion U.S. dollars and the per capita income from the present 3,000 U.S. dollars to 15, 000 U.S. dollars.
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