Prospect of Indonesian Economy

Prospect of Indonesian Economy

Economy situation in Indonesia is very volatile in the recent times. McKinsey Company in 2012 stated that Indonesia is a potential state and having rapidly growth. The economy in Indonesia is growth because a combination between consumption and productivity of the workers. In 2030, Indonesia is predicted will become the seventh biggest state in term of economic scale. [1]

After successfully enjoying economy growth, in September until November 2015 ago, anxiety arises because the rupiah weakened against the US $ to break the USD 14,699 on 28 September 2015 ago. Fortunately, because of the government’s efforts in form of interventions and policies, slowly the rupiah strengthened again. The government keeps the food and energy price in domestic market by providing budget and reserved fund for national food stability.

Bank of Indonesia (BI) estimated the prospect of Indonesia economy in short-term in 2015 to 2016 will have improvement as well as the estimation about vary economy recoveries in the world. BI estimated inflation in 2015 and 2016 in range under inflation target 4 plus minus 1 percent. Whereas, transaction deficit in 2015 is controlled in range 2,5 percent to 3,0 percent. [2] While, credit growth in 2015 is estimated increasing especially in second semester of 2015.

Still according to BI, in the middle-term, prospect of Indonesian economy is in the track that continuously grows supported by structural reformation that was implemented by the government in the frame of RPJMN. There is also prospect of the middle term, namely, Indonesian economy growth in 2019 is estimated in the number 6,5 percent, inflation in target range 3,5 plus minus 1 percent, and transaction deficit is running decrease and more stable in range  1,5 percent to 3,0 percent towards PDB.

Based on the overview above, the volatile condition of economy experienced by Indonesia actually has big opportunity to keep grow year by year. Even though the rupiah towards US$ weakened but the government is success to make an effort of economy stability in domestic area. This will not give significant effect towards the Indonesian consumption and productivity. Precisely, in short-term, the economy has improvement continuously that will bring changes for the Indonesian economy. Thus, the situation and overview would allow Indonesia to occupy the 7th largest country in terms of economic scale.

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