Indonesia cuts 2016 economic growth target

Indonesia cuts 2016 economic growth target

A woman walks through a market in Jakarta on May 31, 2016. Indonesia has lowered its economic growth due to low consumption. (Reuters photo)
A woman walks through a market in Jakarta on May 31, 2016. Indonesia has lowered its economic growth due to low consumption. (Reuters photo)

JAKARTA - The Indonesian government has lowered its economic growth target for this year to 5.1% from the initial 5.3% target, a finance ministry official told a parliamentary hearing on Wednesday.

Domestic consumption may not grow as strongly as the government initially estimated, said Suahasil Nazara, the head of the fiscal policy office at the ministry.

The government is in talks with parliament to revise the 2016 state budget. A lower growth target would affect the projected state revenue and push the fiscal deficit wider, Nazara said.

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