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World Bank Maintains Indonesia`s Economic Projection in 2017

TEMPO.COWashington – The World Bank, in its report, projected that Indonesia’s economic growth will reach 5.3 percent in 2017. In total, World Bank has cut the world’s economic growth projection by 0.1 percent to 2.7 percent and 4.2 percent for the developing countries this year.

World Bank revealed that Indonesia, as the largest commodity exporter in East Asia and Pacific, will be able to quickly anticipate commodity’s price decrease.

“Other than that, Indonesia is able to accommodate the monetary policy which helps sustain domestic demands, so that the economy can still moderately grow by 5.1 percent in 2016,” as quoted from World Bank’s report ‘Global Economic Prospect’ published on Tuesday, January 10, 2017.

The growth of commodities exporter countries, the report said, is estimated to be 4.9 percent in 2016. In the medium-term, these countries are predicted to go through a 5.3 percent average growth until 2018 since they have successfully anticipated the drop in commodity prices.

Indonesia’s economy which was estimated to endure a 5.1 percent growth last year, will be able to go through a 5.4 percent average growth between 2017-2019.

“Indonesia is mainly supported by the rise in foreign investments, meanwhile Malaysia is projected to recover and in the average grow 4.5 percent in 2017-2019,” the report said.

Meanwhile, in the Asia-Pacific and East Asia, the World Bank predicts a 6.2 percent growth this year. The projection has taken into consideration China’s slow rate growth which will affect the region’s growth. China’s economy is predicted to only grow 6.5 percent in 2017.

Thailand’s economy is predicted to grow 3.2 percent. Philippine’s economy is also predicted to grow 6.9 percent in 2017. While Vietnam’s economy is predicted to grow at a slow rate to 6 percent in 2016.

ABDUL MALIK | GHOIDA RAHMAH