International Monetary Fund (IMF) Sees Indonesia's GDP Growth at 4.9%

 

The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., consisting of

Kami menyediakan informasi berkelas untuk memaksimalkan potensi keuntungan trading forex yang Anda lakukan. This provocative new cabinet contained a number of members from his crony-group and therefore did little to restore confidence in the Indonesian market. Each member's quota also determines its relative voting power.

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Besides these favorable conditions, economic growth can accelerate provided that the government can create more fiscal space for public investment in infrastructure development and implement well-targeted social programs.

Another crucial point is reducing the country's dependence on raw commodities and instead improving the role of manufacturing. The IMF stated that the economic stimulus packages that have been released by the Indonesian government since September are rightly aimed at improving Indonesia's competitiveness and the productivity of investment.

However, Indonesia is also known for weak implementation of its plans and therefore the IMF advises the government to build on these actions and push on with further reforms. One point in particular that needs attention is the liberalization of trade.

Infrastructure development remains vital in order to improve the country's competitiveness. To overcome the lack of adequate infrastructure Indonesia needs to attract more investment by improving the ease of doing business in the country. For example by reforming the complex regulations. The IMF notes that there are positive signs: Please sign in or subscribe to comment on this column.

Sign in Subscribe Newsletter. International Monetary Fund IMF The IMF stated that the economic stimulus packages that have been released by the Indonesian government since September are rightly aimed at improving Indonesia's competitiveness and the productivity of investment.

A salesperson shows a customer the latest smartphones in a showroom in Jakarta, Indonesia: With the third largest youth population in the world and million active social media users , Indonesia is poised to become the biggest digital economy country in Southeast Asia.

To fully embrace the digital opportunity, Indonesia must enhance its infrastructure and increase internet penetration to lift economic growth and productivity. There has also been a large shift towards digital financial services—a promising development that can support financial inclusion given that the country houses the third largest unbanked population in the world. For instance, an Indonesia Banking Survey performed by PricewaterhouseCoopers shows that the number of people who mostly banked through traditional branches over 50 percent of their total transactions dropped from 75 percent in to 45 percent in And digital transactions are growing rapidly.

The country has over 1, digital startups to show for it—trailing only behind the United States, India, and United Kingdom. For example, Go-Jek, which was established in as a motorbike ride-hailing phone service with a fleet of twenty drivers, evolved into a popular on-demand mobile platform. Still, the country faces a digital divide, that is halting progress. And while internet is affordable in Indonesia, average quality, including the size of the bandwidth per user and the average connection speed is low.

The recent IMF annual economic assessment report focused on reforms that support innovation and job creation to boost potential growth and economic diversification in Indonesia.