Sindonews.com -the World Bank through the World Bank estimates Indonesia's economic growth of Indonesia in 2013 will be at a 6.2 percent rate, or slightly lower than last year's estimate of 6.3 percent. But in 2014, the World Bank projected that Indonesia's economic growth will reach 6.5 percent.
Sector Manager of the World Bank Lead Economist & Indonesia, Jim Brumby said Indonesia's economic growth is still strong compared to that trading partner countries. However, increasing pressure for Indonesia.
He mentioned, the source of pressure on Indonesia's economy slowed the pace of investment, among others, the potential implications of slowing sales growth in nominal GDP and real, external balance sheet trends, the burden of FUEL subsidies, and reduced the rate of poverty reduction slowed.
"With a variety of pressure on economy, poverty reduction targets Indonesia could miss up to 1-2 people, equivalent to about 2-3 million," Brumby said in a quarterly report released today, Monday (18/3/2013).
He mentioned, inefficient government spending is still so big problem for Indonesia, especially the amount of allocation for energy subsidies, especially Fuel (BBM).
Despite increasing pressure increases, the Brumby optimistic Indonesia's economy could continue to go up with an appropriate policy response. That needs to be done to increase investment in Indonesia, according to him, is the certainty of policy and regulatory framework improvements.
While investment is also needed to improve their hard work to overcome the challenges in the field of infrastructure investment. In terms of trade, according to the World Bank, the economy of Indonesia needs to focus more on increasing the competitiveness and not import restrictions.
Brumby also mentions, Indonesia should take advantage of its position as the country with the fastest urbanization rates to boost economic growth.
(gpr)Finance; Investment; Business; Economics
Finance; Investment; Business; Economics
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