Indonesia, Happy Independence Day! Today, August 17, 2019, Indonesia is gratefully celebrating its 74th Independence Day.
Since 1945, Indonesia has been undergoing numerous notable events, including both ups and downs. These cover all sectors, including economy.
To date, Indonesia’s economy belongs to one of the biggest in Southeast Asia, if not the current biggest. Surprisingly, the country has not experienced any negative GDP growth since the 1998 Asian Financial Crisis. That is more than 20 years.
Currently, Indonesia is advancing its economy to the greatest amid the global showdown. Under President Joko “Jokowi” Widodo wings, the country has been boosting reformation in infrastructure and manufacture. Many opined that this might be Indonesia’s “golden age” in economy.
By improving those sectors, the president believes that the attempts are constructing a better image of the country. Needless to say, investments and other aspects will surely skyrocket by having a good image.
“The government believes that investment will continue to flow into the country because of the positive perception about Indonesia and the improvement in the investment climate,” said President Jokowi in his annual budget speech.
With that being said, the government still has much homework to do to improve its economy even better.
Also read: Indonesia Keeps Investing in Infrastructure
Indonesia and Its Homework
Despite having advanced economy progression over the years, Indonesia still has a problem to deal with. For example, the country’s GDP growth is stagnant at around 5% range. This is mediocre for an emerging country.
In the second quarter, the economy only expanded 5.05%. Unfortunately, this was the slowest pace in the last two years.
In response to that, the president forecasts that the economy will grow up to 5.3% next year. If that really happened, this would be considered as the fastest pace since 2013.
However, the country would also have to spend lots of cash in the following years. This is due to the government’s plan to move its capital from Java to Kalimantan (Borneo).
The discussion on the plan is on going and, if everything goes according to the plan, the capital will move in around 2022 or 2024.
Also read: Indonesian Local Pride Improves the Successful Local Business
