"I think, we are already hitting the bottom. Now the condition is improving and the people are having greater confidence," Toni Prasetiantono from the state University of Gadjah Mada (UGM), said.
In 2015, the countrys economy grew 4.79 percent and in the last quarter of that year, the economy grew stronger by 5.04 percent crossing the psychological level, Tony said here on Tuesday.
Improvement in the peoples confidence was indicated in car sales that exceeded 1 million units in 2015 higher than previous estimate of 950,000 units, he said.
He said the falling value of rupiah against the U.S. dollar once forced the people to curb consumption, but now gradually the people are more relaxed.
"The worst period when rupiah weakened to a level of more than 14,000 per dollar has been over," he said.
In addition the rise in the fund rate of the U.S. Central Bank has ceased to be a specter of global uncertainty, even if the Fed still continues raising its fund rate gradually, he said.
Tony, however, cautioned the government against a host of challenges this year especially as a result of the shrinking oil prices that already fell to below US$30 per barrel.
He said continued fall of the oil price could result in investors putting off plans for oil investment and explorations.
"No one could say that the price could no longer sink lower. We dont know the rock bottom for oil price . The IMF predicted that the oil price would dive as low as US$15 per barrel," he said.
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Editor: Aditia Maruli Radja
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