Economic Growth to Reach 6 Percent in 2020-2021: Bank Indonesia

TEMPO.CO, Yogyakarta - Bank Indonesia (BI) projects economic growth to reach 6 percent in 2020-2021. The achievement will be supported by improvement in investment and export performance. “For next year, we predict 5.1-5.5 percent growth and increase to 5.3-5.7 percent in 2019. Thereafter, hopefully it can reach over 6 percent in 2020-2021,” BI Assistant Governor for Economic and Monetary Policy Department Dody Waluyo said on Sunday.

He explained that infrastructure development carried out by the government may have an indirect impact on investment. Improved investment performance in the mid- and long-term could help achieve economic growth of over 5 percent starting 2019.

Dody estimates that investment performance in the mid- and long-term may grow at around 6-7 percent or higher than the current figure of 5 percent. In addition, the efforts to boost the competitive national production could help improve export performance that can contribute to the economy. “Export in the mid- and long-term can grow at an average of 4 percent until 2020-2021.”

In the Financial Note and the draft 2018 state budget, the government is aiming for 5.4 percent economic growth in 2018. The target will be supported by stable people’s consumption, increased investment, and improved export and import performances. The estimated figure is based on projected gross fixed capital formation (investment) that is expected to grow by 6.3 percent in 2018, household consumption and export that are expected to grow by 5.1 each, import of 4.5 percent and government consumption of 3.8 percent.

GHOIDA RAHMAH | ALFAN HILMI | ALI NUR YASIN