Indonesia, the largest economy in Southeast Asia, is struggling to find extra fuel to boost its economic growth this year after the latest data revealed results that did not meet expectations.

The light is flickering dimly at the end of the tunnel for Indonesia, with economic recovery a difficult journey and 5.1 percent a tough growth target for this year.

The country was forced to face a hard truth on Monday when it discovered that gross domestic product (GDP) only expanded 4.94 percent annually in the fourth quarter of 2016, slowing down from 5.01 percent in the previous quarter and below the overall consensus of 5 percent.

With such a result, overall GDP growth only stood at 5.02 percent, prompting worries among economists that the country may not have enough wiggle room to push the economy to 5.1 percent as the government targeted this year.

Any figure beyond 5.1 percent will now be even harder to achieve.

“With commodity prices likely to remain depressed and policymakers running out of ideas how to stimulate the economy further, we expect growth to remain stuck at around 5 percent over the next couple of years,” Gareth Leather, senior Asia economist at London-based Capital Economics, said in a research note.

Key commodity exports, particularly coal and palm oil, have seen an increase in prices in recent months but Leather said his group’s commodities team expected prices to drop back again over the coming quarters.

“Low commodity prices will depress export revenues,” he said.

The country cannot put too much hope in government spending or monetary easing either to fuel growth in 2017.

The government has stated on numerous occasions that it will be vigilant in the disbursement of its budget and President Joko “Jokowi” Widodo has previously made calls to scrap non-essential spending.

The government seeks to maintain a deficit of 2.41 percent in this year’s state budget, below the legal limit of 3 percent.

Central Statistics Agency (BPS) head Suhariyanto confirmed that austerity measures last year took a toll on the contribution of government spending to the economy.

The measures included Rp 137 trillion (US$10.28 billion) in cuts to the state budget and in the end, government spending fell even further by 4.05 percent in the fourth quarter from 2.97 percent in the third quarter.

Meanwhile, further monetary easing by Bank Indonesia (BI) would be too risky since the fiscal policies of the United States may prompt the US Federal Reserve to raise its rates more quickly than expected.

In addition to that, risks emanating from China’s economic adjustment and rising domestic inflationary pressure may terminate BI’s easing policy after it managed to carry out six cuts in 2016.

Growth in household consumption, which is the largest component of GDP, might slow in the first quarter due to higher inflationary pressures caused by rising administered prices, said SKHA Institute for Global Competitiveness chief economist Eric Sugandi.

The private sector may hold the key to recovery but concerns remain whether the government can trigger interest.

While Bank Central Asia (BCA) chief economist David Sumual said the government should continue improving the business climate and implement economic stimulus, CReco Consulting economist Chatib Basri insisted the private sector could do more with higher demand.

Such economic reforms are also encouraged by the International Monetary Fund (IMF). In its 2016 Article IV Consultation with Indonesia, the IMF said it encouraged further structural reforms to improve the business environment and boost private investment to support greater and more inclusive growth.

More specifically, the IMF highlighted priority areas such as expanding infrastructure, enhancing the regulatory framework, opening up new sectors of the economy to investment, closing the gap in labor skills through improved education and developing a more flexible immigration regime for skilled workers.

Prima Wirayani and Fedina S. Sundaryani contributed to the story

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