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Indonesia's growth lackluster as world economy grows bleaker
Bank Indonesia (BI), the Finance Ministry and economists recently projected that the country’s economic growth would reach 5 to 5.1 percent this year, below the government’s 5.2 percent target and on the lower end of the central bank’s 5 to 5.4 percent growth target range.
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A worker gestures as a crane lifts lumber for export onto a cargo vessel at a port in Lianyungang, Jiangsu province, China. (Reuters/Stringer)
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ndonesia’s economy has seen lower-than-expected growth this year, as trade war-driven global economic concerns have slowly crept into consumer confidence following a string of negative economic projections from much weaker global trade to recession in large economies.
Bank Indonesia (BI), the Finance Ministry and economists recently projected that the country’s economic growth would reach 5 to 5.1 percent this year, below the government’s 5.2 percent target and on the lower end of the central bank’s 5 to 5.4 percent growth target range.
“We continue to look for [new] sources of growth including [ways to] boost the manufacturing industry, tourism, small and medium enterprises [SMEs], the digital economy and finance,” BI Governor Perry Warjiyo told the press on Friday, expecting 5.1 percent economic growth for the full year 2019.
The ministry’s fiscal policy office on Sept. 24 announced it saw the economy growing at a lower rate than expected at 5.08 percent, while the Asian Development Bank (ADB) on Sept. 25 cut Indonesia’s 2019 economic growth outlook to 5.1 percent, from 5.2 percent previously.
Indonesia is feeling the pinch of trade wars around the world between the United States and China, the US and European countries, as well as Japan and South Korea, as the large economies are all main trading partners of the country.
The World Trade Organization on Oct. 1 sharply downgraded its trade volume growth forecasts from 2.6 percent to 1.2 percent in 2019 as heightening trade tensions between the US and China weighed global trade down.
Read also: Indonesia needs to issue more reform packages to spur economic growth, IMF says
