Apindo Predicts the Economy to Grow by 5.5 Percent in 2016
Hariyadi Sukamdani, Chairman of the Employers Association of Indonesia (Apindo) predicted that the Indonesian economy will grow by 5.5 percent in 2016. The figure is higher compared to 5.3 percent assumption made by the government in the 2016 State Budget.
"The projection is considered moderate based on the development of global economy and domestic economic reform, which had shown improvements although not yet significant," Hariyadi said on Monday, December 14, 2015.
Hariyadi added that in 2016, growth will be driven by the government's actions, including improving government consumption and attracting investments through the acceleration of infrastructure projects, such as toll roads, ports, and electricity. These actions are considered to be in line with the government’s effort to reduce logistics costs.
"The completion of institutional reform could also accelerate budget spending in other sectors," Hariyadi added.
Furthermore, Hariyadi said that improvements on investment climate supported by economic policy packages are also predicted to increase investment by 8.6 to nine percent through increasing domestic demands and export activities.
Hariyadi added that social and political stability in the country will also help to improve the country's economic condition.
In relation to global economy, Haryadi said that economic recovery happening in the United States, European Union, developing countries, along with decreasing global oil prices, will also contribute to improving domestic economic conditions.