OECD: Indonesia to Experience Fastest Growth in ASEAN

TEMPO.CO, Jakarta - Developed economies from the Organization for Economic Cooperation and Development (OECD) predicts Indonesia will experience the highest level of growth compared to other ASEAN countries—at around six percent per year—from 2014 to 2018.

"Followed by the Philippines at 5.8 percent, Malaysia at 5.1 percent and Thailand at 4.9 percent," said Head of The Asia Desk, OECD Development Center, Kensuke Tanaka.

This was in line with OECD’s evaluation of Asia’s emerging economies, including Indonesia, which is projected to remain strong in years to come.

The prospect of Asia’s emerging economies—comprising Southeast Asian nations, China and India—are supported by increases in domestic demand. Tanaka projects an annual average growth of some 6.9 percent from 2014 to 2018 for these nations. Although it is slightly slower compared to before the 2000 to 2007 economic crisis, this region will still have a crucial role in the global economy.

To maintain these achievements, Tanaka said Asian emerging economies must conduct various structural reforms in order to make use of capital inflows effectively and anticipate capital flow reversals.

"Aside from that, it is important to ensure integration and the regional economic cooperation planned for 2015, in order to reduce gaps," he said.

MAYA NAWANGWULAN