Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 482 Mon. October 03, 2005  
   
Business


Indonesian Q4 GDP to be hit by Bali bombings


Indonesia's economy will suffer a new blow in the fourth quarter after the Bali bombings, the country's planning minister said Sunday.

National Development Planning Minister Sri Mulyani Indrawati said Saturday's bombings would be a second blow to growth after the government more than doubled fuel prices over the weekend.

"With this bombing I think the fourth quarter will be double-hit because first we are increasing quite significantly the fuel price that may lead to an increase in inflation, (which) will maybe to some extent reduce the potential growth that we are expecting," Indrawati told reporters on the sidelines of the World Islamic Economic Forum here.

"With this Bali bomb, I think it will be reduced even more. If we are lucky I think we can still maintain 5.7 or 5.9 by the end of 2005," she said.

The official growth forecast for 2005 is 6.0 percent but Indrawati earlier this month had already predicted growth would slow to 5.8 percent for the year after rising oil prices and interest rates.