The association expects the country’s economy to grow at a rate of only 4.85 percent to 5.1 percent in 2020, below the government’s target of 5.3 percent. Meanwhile, for this year, the association has lowered its projection to between 4.95 percent and 5.1 percent from its initial forecast of 5.2 percent.

The association’s chairman, Hariyadi B. Sukamdani, said uncertainties in the global economy as a result of the escalating trade war between the United States and China would continue to hamper Indonesia’s exports, one of the major drivers of the country’s economic growth.

“Although, if the omnibus law can be implemented and [provide lots of employment opportunities in 2020], we think that reaching 5.1 percent is a possibility,” he told journalists at a press conference in Jakarta on Tuesday.

The association is pinning high hopes on the planned omnibus law on job creation, scheduled to be implemented by the middle of next year, so that it can increase investment, which could in turn produce additional economic output and create more jobs.

The planned law, which would revise more than 70 overlapping laws, would put an emphasis on simplifying business licensing and investment processes in the country as part of a broader effort to improve competitiveness.

Hariyadi also said that the 2019 growth prediction was lower than the association's projection of 5.2 percent made last year because of the widening current account deficit and the decline in economic activity during the presidential elections in April.

Challenges that needed to be addressed in the upcoming year, he said, were improving the online single submission (OSS) system to become fully integrated as well as implementing the super tax deduction regulation for research and development activities.

“Tourism also has tremendous potential. Hopefully, the [Garuda Indonesia] case can become a turning point for the industry that will make the airline industry more competitive,” he said, referring to the recent Harley-Davidson motorcycle smuggling case implicating directors of the airline.

International credit rating agency Moody’s Investor Service said recently that Indonesia’s GDP is expected to grow by only 4.9 percent this year and further decline to 4.7 percent in 2020 — the slowest pace since 2016's fourth quarter — as weak commodity prices continue to hit the economy hard.

However, the growth is expected to slightly recover to 4.8 percent in 2021.

Meanwhile, Apindo deputy chairman Shinta Kamdani said at the same event on Tuesday that, amid the global slowdown, Indonesia could seize economic opportunities by signing more bilateral agreements, such as the Indonesia-Chile comprehensive economic partnership agreement (CEPA) or the ongoing ratification of the Indonesia-Australia CEPA.

She went on to say that nontraditional markets, such as African countries, could provide opportunities for Indonesia to invest in trade and infrastructure.

This year, Indonesia had agreed to export rolling stock to Zambia and Madagascar as well as to renovate the Nigerian presidential palace in a project worth 200 million euro (US$221.6 million).

Shinta said the most ambitious plan for the country would be to finish the European Union-CEPA deal by next year as well as maximize exports of textiles and furniture, among other goods, to the US during the trade war.

“Indonesia needs to engage in more fair and reciprocal trade. It not just about which country has a lower tariff, but also what they can give to us, like capacity building or transfers of technology,” she said.

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