TEMPO.CO, Jakarta - The World Bank is projecting Indonesia`s economy to experience 5.2 percent growth in 2018 and 2019. By 2020, the institution said Indonesia`s growth would accelerate to 5.3 percent.
"Domestic demand is expected to continue supporting short-term growth," World Bank's lead economist Frederico Gil Sander said in Jakarta, Thursday, September 20.
A moderate acceleration in private consumption is expected to last on stable inflation, high labor market, and low, declining loan interest rates. The government spending is also estimated to increase.
"A growth in revenues creates space for fiscal consolidation and additional spending," Frederico said.
Additionally, investment growth is expected to remain high; motored by public and mining investments, plus the subsiding post-elections uncertainties.
As of Q2/2018, the World Bank noted Indonesia's economic growth at 5.3 percent—fueled by high domestic demand.
"There is also an increase in credit growth, agriculture revenues, and stable inflation," Frederico remarked.