ASSOCIATION OF INDONESIA SHOPPING CENTERS CORRECT NATIONAL ECONOMIC GROWTH TO 5.8%

The Association of Indonesian Shopping Centers Management [APBI] admitted hey had no other option but to accept economic slowdown in Q I 2014 unless the government again corrected growth figures. Economic slowdown in Semester I 2014 was so strongly visible, especially to compare against same period of 2013, when growth was posted at 15 percent. This year, economic growth was at below 10%. “Inflation is set to remain low, that’s fine. But economic growth dropped, supposedly it goes up, ideally 5.8%; but if economic growth was constantly revised. Business will die, we cannot sell, we cannot make order to the factory. The way it had been retailers order garment, electronics etc. our export declined drastically because export of mineral products drop.” Hanadaka Santoso of the APPBI Management disclosed to Business News [8/8].

APPBI saw the case of economic slowdown the pragmatic way because APPBI were practitioners and professionals who were directly involved with daily business activities, “The economists may make predictions, but we are practitioners. Everyday we deal with cashflow, inclusing payments for electricity bill, insurance, water, building rent etc. if economic growth is set low, frankly speaking we are sort of afraid”

APBI claimed they were not alone together with other business associations who were also worried by Government’s policy. APBI was also referring to the Association of Indonesian Food and Beverages Traders [GAPMMI] and other associations who were disheartened by economic slowdown. The most pressing thing for crash program was that the Government must also correct population growth figures. With ideal figures, businesspeople could ‘breathe’ relaxedly. APBI also saw that the increasing flow of the only benchmark. “to see with keen eyes, visitors to malls are increasing are but sales remain and are even reduced, especially to compare against 2013, sales in 2014 is low”

Money circulation in Semester I 2014 did not increase. The chain effect was on various sectors, not just retail but also other sectors. Foe example housing, regardless of upper of lower class, could not meet public demand. The Government projected people’s need for homes at 15 million units. “we are demand. But there is backlog. Consumers who previously pay installment of Rp2 or Rp3 million now have to pay Rp3 to Rp4 million, so many people claim could not afford to pay installment for mortgage or cars.” (SS)

Business New - August 13, 2014