Monday, 16 December 2019 12:53

Predicting Indonesia's Economic Growth in 2020

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Ahead 2019 year-end, many parties are predicting Indonesia's economic growth in 2020. The Central Statistics Agency on Thursday (5/12) reported data on Indonesia's economic growth in the third quarter of 2019, which reached 5.02%. This figure decreased in comparison with the first and second quarters of 2019 which were 5.07 % and 5.05%.

Asian Development Bank economist in Indonesia, Emma R Allen projects that Indonesia's economic growth in 2020 will reach 5.2 percent with encouragement from the investment sector and private consumption figures that remain strong. She also explained this after a discussion on "Indonesia’s Economic and Political Outlook 2020" held by the Foreign Policy Community of Indonesia along with Price Waterhouse Coopers in Jakarta, Friday (13/12). The projection is based on investment that will increase after the appointment of cabinet members in the second term of President Joko Widodo’s government. Another factor is the announcement of the planned enactment of the Omnibus Law, predicted to make the Indonesian business sector more attractive and fascinating foreign investors.

While the Indonesian Employers' Association (Apindo) said that next year, Indonesia's economic growth will not be much different from the conditions this year. From Apindo's study data, the growth is estimated to be in the range of 4.85%-5.1%.

Meanwhile, Ministry of National Development Planning expressed optimism in Jakarta on Sunday (15/12) that Indonesia's economic growth could reach 6 percent. At the same time, in a media briefing in Jakarta, Deputy for Maritime and Natural Resources at the Ministry of National Development Planning, Arifin Rudiyanto outlined a number of strategies so that the Indonesian economy would grow averagely six percent in the National Medium-Term Development Plan 2020-2024. The strategy includes encouraging investment growth, especially in the manufacturing sector. This is because the manufacturing sector has high added-value and downstream sector is still potential to be explored by seeking high technology and large investments. Another point is to improve the investment climate by simplifying investment regulations and procedures as well as selecting locations that focus on industrial zones and special economic zones.

Whatever the prediction is, the Indonesian people and government must keep being optimistic that Indonesia's economic growth in 2020 will increase compared to 2019. Admittedly, this is not easy amid today's uncertain global conditions, especially with the ongoing trade war between the United States and China and geopolitical turmoil in a number of regions.

Read 241 times Last modified on Tuesday, 17 December 2019 12:10