Jakarta (ANTARA News) - World Bank Chief Economist in Indonesia, Frederico Gil Sander, said that the Indonesian economy could grow higher than five percent through the support of a number of structural improvements.
"The Indonesian economy can have more potential by removing a number of obstacles," Gil Sander stated in a presentation in Jakarta on Thursday.
He noted that structural improvements must be carried out to encourage productivity and growth, especially in the trade and investment sectors.
These improvements include encouraging improvements in the investment and export climate and protecting business activities from unfair competition.
In addition, it provides clear regulatory and legal certainty as well as energy policies that do not burden the current account balance.
"This effort must also be supported by investments in `human capital` and infrastructure to make the economy progress and grow better," he added.
The latest Indonesian Economic Quarterly Report states that Indonesia`s economic growth in 2018 and 2019 is estimated to reach 5.2 percent, respectively.
This growth is supported by strong domestic demand as well as investment and export activities.
There is a risk from Indonesia`s economic growth projections, as there are still global trade tensions and a tightening cycle of monetary policy from the Central Banks in developed countries.
However, Indonesia can escape the negative impact of global turmoil if it has sound macroeconomic fundamentals, supported by strong coordination of fiscal policy, monetary, and exchange rates.
Reporting by Satyagraha, Eliswan Azly
Editing by Yoseph Hariyadi