Indonesia gets its IMF growth forecast expanded to 5.2 pct this year

By APD writer Maverick

JAKARTA, Sept. 11 (APD) – Indonesia’s economic growth forecast for this year was revised higher to 5.2 percent by the Washington-based financier agency of International Monetary Fund (MF), fits with IMF’s average growth among big 5 economies in Southeast Asia region.

The IMF’s recent revision on Indonesia was seen in its latest World Economic Report entitled “Seeking Sustainable Growth: Short-Term Recovery, Long Term Challenges” issued on Tuesday Washington, the United State time.

IMF’s latest growth forecast for Indonesia was slightly higher than 5.1 percent it initially forecasted in April, fits with Indonesian government growth assumption set in its revised state budget this year and its average growth forecast among Southeast Asia’s big 5 economies.

IMF previously in April forecasted its average growth among Indonesia, Malaysia, the Philippines, Vietnam and Thailand at 5 percent.

“Aggregately it was related to the increasing demands from China and European countries,” IMF said in the report.

Among big five Southeast Asian economies, the Philippines spearheads with 6.6 percent, followed by Vietnam and Malaysia at 6.3 and 5.4 respectively. Indonesia and Thailand came later with 5.2 and 3.7 percent.

IMF, however, did not revise its Indonesia’s growth forecast for next year at 5.3 percent which is lower than 5.4 percent targeted by Indonesian government in the year.

To attain the growth target for 2018, Indonesia Finance Minister Sri Mulyani previously said that a 6.3 percent growth needs to be secured in investment and components to gather sufficient gross capital fund, among other the expanding bank loans.

(ASIA PACIFIC DAILY)