ADB: Indonesia’s Economic Grow Slightly by 5.2-5.3% in 2019-2020
The Asian Development Bank (ADB) estimates that Indonesian economy will grow by 5.2 percent this year and 5.3 percent by 2020 triggered by strong investment and domestic demand, said the agency on Wednesday (04/03).
According to ADB’ Director for Indonesia Winfried Wicklein, with support from solid macroeconomic management and strong domestic demand, Indonesia’ growth momentum is expected to continue in a healthy manner.
“To further promote sustainable and inclusive growth, a continuous focus is needed on increasing competitiveness, human resource development, and strengthening resilience,” he said in a written statement.
In his view, ADO reviews that strong domestic investment and good domestic consumption can offset weaker export growth in 2018, allowing the economy to grow 5.2 percent.
Meanwhile, domestic demand is believed to be going to remain strong in the short term due to the increase in employment in the formal sector and the expansion of government social assistance programs.
Inflation is likely to remain low and stable at 3.2 percent this year and 3.3 percent by 2020, thus helping maintain the momentum of growth in private spending.
ADB sees that strong domestic demand boosted imports of goods last year, while the growth of goods exports slowed. The increase in net services exports from increased tourism revenues and remittances was able to partially offset the decline in the trade balance, making the current account deficit (CAD) by 3.0 percent of gross domestic product (GDP) last year.