“Economic outlook is positive with a supportive global economy and strong domestic fundamentals.”
With a more conducive world economy, coupled with improved domestic fundamentals, the outlook for the Indonesian economy continues to be positive. Despite global policy uncertainty and the risk of increased trade protectionism, the world economy is becoming more supportive with faster economic growth, a rebound in international trade, relatively accommodative financial conditions, and a moderate recovery in commodity prices. Indonesia’s real GDP growth is projected to increase from 5.0 percent in 2016 to 5.2 percent this year, and further strengthen to 5.3 percent in 2018 (table below).
In the baseline forecast, investment is expected to firm up due to the ongoing recovery in commodity prices, improved investor confidence buttressed by the S&P rating upgrade, and lower commercial lending rates. Exports growth is expected to surge this year and stay robust in 2018, lifted by stronger external demand in line with faster global economic growth and the rebound in global trade.
Demographic bonus becomes a strategic opportunity for Indonesia to accelerate its economic development, supported by the availability of productive age population in significant quantities.
The Statistics Indonesia (BPS) estimates that Indonesia will enjoy a demographic bonus era in 2020-2035. During this period, the number of productive age population is projected to be at highest chart history, reaching 64 percent of the total number of Indonesian population of 297 million people
“Policy Reform Has Shown Positive Response: Better Outlook & Higher Confidence & Trust.”