Advice from World Bank for Indonesia

TEMPO.CO, Jakarta - World Bank has advised Indonesia to keep strengthening its economic fundamentals to face impacts from The Fed’s tapering off this month. World Bank’s lead author Andrew Burns said the effects of stimulus cut will remain in the next five years.

Burns said at the World Bank's representative office for Indonesia in Jakarta yesterday that tapering causes developing countries to worry since it could withdraw capital. He said Indonesia has to strengthen its economic fundamentals by undertaking bureaucracy and infrastructure reforms. 

However, Burns said economic condition of developing countries, including Indonesia, this year will improve.

According to him, economic improvement is caused by of the recovering global economy.

Finance Minister Muhamad Chatib Basri previously said the government will keep conducting economic structural reforms by decreasing imports and boosting exports. He believed Indonesia's trade balance will improve this year which will suppress current account deficit.

"Trade balance has been in surplus in the last three months. This will make current account deficit to improve," he said.

ANGGA SUKMA WIJAYA