Investment, household consumption to boost Indonesia`s economy: ADB

Investment, household consumption to boost Indonesia`s economy: ADB

Asian Development Bank (ADB). (adb)

Jakarta (ANTARA News) - Indonesia`s economy is expected to grow 5.3 percent in 2018 and 2019, following accelerated investment and improved household consumption, according to the Asian Development Bank (ADB).

"Indonesia`s strong macroeconomic management and structural reforms have boosted the investment momentum," ADB`s Country Director for Indonesia, Winfried Wicklein, noted in a statement of Asian Development Outlook here on Wednesday.

The outlook highlighted that the strengthening of investment has improved the quality of growth, with higher capital spending from the government helping to address the infrastructure gap.

The investment is expected to continue to accelerate, spurred by positive business sentiment from structural reforms, along with the fast tracking of several national strategic projects.

"With continued reform efforts, the country can reach a higher and more inclusive growth," Wicklein remarked.

Indonesia`s economy in 2017 that grew 5.1 percent, driven by higher export growth, stronger investment, and private consumption, and supported by low inflation and solid job growth, including about 1.5 million manufacturing jobs alone, has become a strong foundation to boost growth in 2018, according to ADB.

The development bank also forecast inflation to stabilize this year after reaching an average of 3.8 percent in 2017, and to increase slightly to 4.0 percent in 2019.

ADB expected that the higher inflation might support consumer confidence and help sustain household spending and real income this year and the next.

ADB is optimistic that the Indonesian government`s continuing efforts in structural reforms can propel the country to a more inclusive growth. Priorities should include infrastructure investment, education and skills development, and investment climate reform.

Based in Manila, ADB is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is has 67 members, with 48 members from the region.

(T.A060/INE)
(T.A060/A/KR-BSR/A/H-YH)

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