JAKARTA, Nov. 25 (Xinhua) -- Indonesia will see a faster economic growth of 5.8 percent next year from an initial forecast of between 5.2 and 5.3 percent following the government hiked fuel price, a minister said on Tuesday.
The Southeast Asia's largest economy would build more infrastructure facilities to spur growth after President Joko Widodo freed up state budget by more than 100 trillion rupiah ( some 82.2 billion U.S. dollars) and 16 trillion rupiah (about 1.3 billion U.S. dollars) respectively following a nearly 31-percent oil price hike, and a slash of official travel and meeting funds this month.
"The funds would be used for the constructions of infrastructure and other productive sectors," Finance Minister Bambang Brodjonegoro said. "Hence the economic growth next year could expand to 5.8 percent."
The fuel price hike has boosted confidence among foreign investors in the government to pursue an over 7-percent economic growth within 2 years.
"We are always think positively. With more foreign direct investment we are upbeat about the sustainability of the growth of the economy," said Brodjonegoro.
In addition to the fuel price policy, the government has set up a task force to investigate the possible leakages on oil distribution, sales and purchase.
Indonesia's economy grew 5.78 percent last year, 6.11 percent in 2012, 6.5 percent in 2011 and 6.811 percent in 2010.
President Widodo, also popularly known as Jokowi, pledged to build roads, ports, railways and education and health facilities to accelerate the country's economy.
As a net oil importer, Indonesia had provided huge oil subsidies which have long burdened the establishment of much needed infrastructure.
Indonesia's aging oil fields pump less crude due to lacking of fresh investment, which forced the country to exit the OPEC in 2008.
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