The International Monetary Fund (IMF) has estimated that Indonesian economic growth would reach about 4.9 per cent this year.

“The IMF revised its the global economic growth forecast due to the declining commodity prices and economic slowdown in emerging countries, such as China and Brazil,” Agus said after speaking at a seminar in Jakarta on Wednesday.

The growth assumption in the 2016 state budget is 5.3 per cent. The Indonesian government plans to submit its budget revision bill to the House of Representatives in May, as part of the government’s response to the continuing global economic slowdown.

Meanwhile, the central bank is projecting growth of between 4.2 and 5.6 per cent.

Indonesia should focus more on volatile food prices to keep the inflation rate below 4 per cent, he said. “If we cannot hold back the inflation rate, it will create a less-competitive climate and the interest rate is hard to cut,” he said.

The government has introduced a number of economic stimulus packages to boost the business climate, including measures such as the deregulation of business permits and employment systems in an attempt to attract investors.