Indonesia’s Economy Predited to Grow 5.2 Percent

Jakarta, InfoPublik - Development Bank of Singapore (DBS) economist Gundy Cahyadi predicted Indonesia's economy to grow 5.2 percent by the end of 2016.

"Economic growth in 2016 would be better than in 2015 when it grew only by less than 5 percent or 4.8 percent. This year it is likely to reach 5.2 percent," he said in a written statement received in Jakarta, Saturday (4/29).

Mr. Cahyadi explained the economic growth resulted from Indonesia’s high economic potential driven by increase in investment and government spending which is expected to be more effective than last year.

In addition, he continued, the consumption sector which is the main pillar of economic growth in Indonesia is also relatively stable.

"The growth is 75 percent contributed from domestic factors including investment and consumption, in contrast to Singapore or HongKong which are more export oriented," he said.

he predicted that Indonesia’s long term economic growth could reach six percent in the next five years if the government is no longer dependent on commodities in export alone.

"In the past, thye country can rely on commodities, but now it can’t. The government has done the right thing by targeting the manufacturing and industrial sectors as the drivers of growth," he concluded. (Translator: Siti Chodijah)