The bank’s prediction of Indonesian economic growth is 5.1 percent this year, 5.3 percent in 2017 and 5.5 percent in 2018.

"The prediction considers the weak performance of global trade and continuing uncertainty of Fed rate hike," said World Bank Indonesia senior economist Hans Anand Beck during East Asia and Pacific Economic Update in Jakarta on Wednesday.

Indonesian exports and imports in 2016 are expected to be negative -- 1.2 to 2.3 percent -- due to the global slowdown.

Trade and tax collection is too weak to support fiscal policies, so the country will continue to have supportive macroeconomic policies including a central bank rate cut due to low inflation and US decision to not raise Fed Fund Rate despite Brexit.

"The Fed is really careful. They also recognize the spillover effect of any rate increase to other parts of the world," World Bank East Asia and Pacific chief economist Sudhir Setty said. (bbn)

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