Sindonews.com -the World Bank praised Indonesia's economic growth rate of a firm during 2012, where the gross domestic product (GDP) reached 6.2 percent or slightly decreased from 2011, reaching 6.5 percent.
But looking ahead, according to the World Bank, there are pressures that are likely to affect the achievement of economic loss in 2013.
"The sources of pressure on the economy slowing the pace of investment, including the potential implications of slowing sales growth in nominal GDP and real, trends in the external balance, the continued burden of FUEL subsidies, and reduced the rate of poverty reduction slowed," wrote the World Bank in its quarterly report released today, Monday (18/3/2013).
According to the World Bank, the greatest risk of short term growth can come from investing in the country. Investment spending has slowed down, especially in the field of solid capital resources (capital intensive sectors).
In addition, the growth of fixed investment (fixed investment) down to 7.3 percent in the final quarter of the year 2012, down from 12.5 percent in the second quarter, and the import of capital goods has been weakened.
Citing data on value added in trade from the OECD and the WTO, the World Bank expressed the importance of input (input) in the manufacturing export import Indonesia, and efforts to improve the integration of Indonesia in the eyes of international production chains, and to improve export performance by facilitating the development of export-related services.
"Investing is also very necessary for the infrastructure that leads to barriers and high logistics costs. Infrastructure investments remain in the range of 3 percent to 4 percent of GDP, compared to about 7 percent recorded before the crisis in Asia, "wrote the report.
According to the World Bank, infrastructure challenges for most cities and towns in Indonesia have been quite severe, with more than half of Indonesia's population lived in urban areas, and the rate of urbanization which remains high.
"An increase in the number, quality and efficiency of the infrastructure investments can help open the economic benefits of urban agglomeration and supports quality public service, especially in medium-sized cities that lag behind the development of smaller urban centres and huge cities (" mega cities ")," wrote the report.
(gpr)Finance; Investment; Business; Economics
Finance; Investment; Business; Economics
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