Indonesia Sees Consumption as Shield Against Chinese Slowdown

Indonesia will seek to sustain the growth in domestic consumption and boost government spending in a bid to shield itself from a spillover of slowing economic growth in China, according to Finance Minister Sri Mulyani Indrawati.

The success in maintaining people’s purchasing power and consumption, which accounts for more than 55 percent of Indonesia’s gross domestic product, will determine if the country can withstand weak external situation, Indrawati told reporters in Jakarta Tuesday. As China is likely to guard its domestic demand, Indonesia’s goods and services exports will not be hurt by the slowdown in Asia’s largest economy that will be caused by weak exports, she said.