23March2017

Home Editorial Indonesia's economy in 2017

Indonesia's economy in 2017

The year 2016 will soon end. It seems that during 2016, the Indonesian Economy could  not escape the influence of the global economy. As a result, it still experienced  deficit which became stagnant even increased, totaling trillions of rupiah.

Along with the down turn trend of the global economic situation, Indonesia’s economic growth is  believed won’t  be able to move quickly. The central bank said in the 2017 national economic conditions are still favorable, though not as strong as the economic growth in 2010 to 2012. Governor of Bank Indonesia Agus Martowardojo explained, the central bank estimates that Indonesia's economic growth in 2017 will be in the range of 5 to 5.4 percent and will be mainly supported by domestic demand.

Meanwhile, Coordinating Minister for Economic Affairs Darmin Nasution said, to strengthen the economy's performance in 2017 and grow beyond the  potentials, the government has launched a combination of policies in a number of areas including infrastructure improvements, deregulation, human resources, fiscal and sector policies. One of the important things in boosting the performance of the economy is accelerating infrastructure development by utilizing the diversion of funds from fuel oil subsidy as well as additional contributions from the private sector. According to Nasution, since September 2015, the government of President Joko Widodo has issued 14 economic policy packages that aim to encourage the Indonesian economy and create an attractive investment climate.

On the other hand, Finance Minister Sri Mulyani Indrawati estimated that global uncertainty will still have a significant effect on the Indonesian economy in 2017. She said the 2017 state budget approved by Parliament late October 2016 was made  in a very challenging domestic and foreign economy  environment. Ranging from the state of the US economy after Donald Trump was elected President of the United States, as well as the economic and monetary policies of developed countries such as the economic conflict and referendums on the European Union countries and the Chinese economy conditions that tend to slow down .

Meanwhile, to improve Indonesia's competitiveness in the fierce global competition the  government has  launched the 2016-2017 Government Openess  Action Plan. According to the Minister of National Development Planning / Head of Bappenas Bambang PS Brodjonegoro, transparency in governance are intrinsically related to government business processes, the overall duty cycle of government that is transparent, accountable, participatory and innovative

Seeing the world economic situation and Indonesia’s domestic situation that tends to heat up  related to  Simultaneous elections in 2017, the public  should be wise in dealing with various issues. An economy that relied on Cooperative and Small Medium Micro Enterprises has proved resilient to the economic recession. The government should encourage sustainability of those two .

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