Indonesia Economy to Grow 5.1%

Along with the ongoing improvement of private investment and consumption levels in Indonesia, the Asian Development Bank estimates the Indonesian economy will grow 5.1% in 2017, up from 5.0% in 2016. While last year’s inflation rate of 3.5% is expected to rise slightly to 4% this year.

ADB President Takehiko Nakau praised the Indonesian government over economic policy that has been taken in the midst of global financial uncertainty, NetralNews reported. 

“I am very impressed with the government’s strong commitment over policy reform that leads to an increase in market confidence and more people of Indonesia get benefit from economic improvement,” Nakau said after he was welcomed by President Joko Widodo (Jokowi), at the State Palace, Jakarta, Wednesday. 

The ADB president also expressed confidence in the economic outlook for Indonesia, and reiterated his support for the Indonesian government’s efforts to foster inclusive growth. Nakau also supports a series of policy reforms in various fields aimed to increase investment, strengthen competitiveness, and diversify the economy.

The programs among others are 14th economic package having been issued since September 2015 tax amnesty program, the development of clean energy sources, the development of inclusive financial sectors, as well as educational programs and vocational training.

Dealing with vocational education, Nakau supports the Indonesian government’s efforts in improving the excesses, the quality and relevance of education programs to fit the needs of the workforce. To that end, Nakau is scheduled to visit several polytechnics in the field of shipping and electronics that receive ADB assistance in Surabaya.