The World Bank forecasts that the global economic crisis to peak next year and urges Indonesia to take preparation to face the threat, Indonesian minister said here on Friday.
Indonesian Coordinating Minister for Economy told a join press conference after the meeting of World Bank Managing Director Sri Mulyani Indrawati at the State Palace that the bank suggesstion to Indonesia was inline with steps had been taken by the government.
"Today the president and Mrs Sri Mulyani have had constructive talks. The World Bank gave analysis that the crisis in Europe may peak in 2013," he said.
"The world bank proposed several things for us to do. And they are in line with measures we have taken," said Hatta. On her turn, Sri Mulyani confirmed that the world economy would remain facing many challenges and asked countries to give protection on the most vulnerable group of people, the poor group, and to keep the momentum of qulified growth of the economy.
"The situation of the world economy will remain to be full of challenges. It is relevant for the countries to be prepared in facing the risks, particularly protecting the most vulnerable group, and keeping the momentum of qualified growth of economy," she told the joint press conference.
The world bank has forecast Indonesia economy to expand by 6.1 percent this year. The Indonesian central bank on July 12 revised down its forecast on Indonesia's economic growth target this year to 6.1 percent to 6.5 percent from the initial target of 6.3 percent to 6.7 percent.
For next year, the bank also trims the country's growth target to 6.3 percent to 6.7 percent from 6.4 percent to 6.8 percent. The bank kept its basic rate unchaged for the fifth straigh months at 5.75 percent on July 12 to ease inflation pressure and spur economic growth.
The debt crisis in Europe has pushed global funds to exit from Indonesia that hit rupiah against the U.S. dollar that push imported inflation.
The central bank has vowed to boost intervention in currency and bond market to stabilize rupiah.
Indonesia's export has been hit by the decreasing global demand and forecast the decline on the export is going to persist. But the country's exports only accounts of about 26 percent of the GDP, according to Trade Minister Gita Wirjawan, lower than those in neigboring countries.
Last week, visiting IMF chief Christine Lagarde warned Indonesia over the possible risks of crisis in Europe as she praised Indonesia's economic performance./.