World Bank Acknowledges Indonesia’s Economic Resilience

Jakarta, InfoPublik – The World Bank stated that Indonesia’s economy has managed to overcome the global financial turmoil and is in good position to address future challenges on economic growth.

"It is becaouse of Indonesia’s strong economic foundation and policy reformation such as the improved fiscal credibility and government expenditure composition, low and stable inflation, strong growth in private consumption, budget and current account deficit and moderate government debt," World Bank Acting Lead Economist Hans Anand Beck said on the report on Thursday (1/19).

Nevertheless, he added, Indonesia should be wary of the risks of its projected economic growth. These risks include the continuing financial turmoil, weak trade, and slow economic growth in developed countries.

"Other risks are the continuing slowdown of the Chinese economy, global policy uncertainty particularly in global trade agreement as well as the normalization rate of  the United State’s interest," he said.

He also added that Indonesia’s GDP growth forecast remained unchanged from October report: 5.1% for 2016 and 5.3% for 2017.

"In 2017, Indonesia’s economic growth will depend on the increasing of private sector investment, monetary sector and the implementation of government’s investment climate reforms," he concluded. (Translator: Rina Alexandra)