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Indonesia`s Economy Improving, BI Says

TEMPO.CO, Jakarta - Bank Indonesia Governor Agus Martowardojo said Indonesia`s economy will continue to improve this year. This, he said, is supported by positive developments domestically and internationally.

Globally, the world’s economy is expected to grow 3.5 percent, higher than 2016′s 3.1 percent.

“This may push commodity prices, both energy, and non-energy,” he said in Jakarta Thursday, April 27.

Internally, Agus said that the economy is supported by fewer corporate consolidation processes. “As corporate optimism increases, banks are likely to start raising credit disbursement as risks are declining,” he said.

In the medium-run, the central bank’s governor said that Indonesia’s growth prospects will continue, followed by low inflation, supported by the government’s efforts of structural reforms.

Structural reforms, he added, will boost efficiency and productivity, and improve connectivity.

This will allow the economy to grow without adding pressure to inflation rate and current accounts deficits.

“However we need to well-manage these economic prospects, as there are emerging risks—global and domestic,” Agus said.

ANGELINA ANJAR SAWITRI