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ADB Projections: Despite The Difficult Economic Conditions Of Indonesia Still Grow This year

Jakarta (Benchmark News) – Indonesia’s strong economic growth this year ADB projections: despite the difficult economic conditions of Indonesia Still Grow this year

Jakarta-Indonesia’s strong economic growth this year and next year, although the biggest Southeast Asia economy is facing some challenges short term. According to a new report of the Asian Development Bank (ADB) released today.

In its annual economic publication updates, the Asian Development Outlook 1999, ADB estimate growth of gross domestic product (GDP) in 2016 Indonesia amounted to 5.0%, down from an estimate of the ADB in March amounted to 5.2%, and estimates to 2017 amounted to 5.1%, down from a previous estimate of 5.5%. This forecast reflects the adjustment of the investment spending is lower than previously expected.

“In the midst of a difficult situation, Indonesia’s economy will still grow healthy this year. Increasing national policy reforms in Indonesia and recovering the momentum of growth of the economy the main industrialized nations, likely we will see an increase in the economy further in the coming year, “said Sona Shrestha, Deputy Head of the ADB’s representative in Indonesia, in affidavits, Wednesday (27/9/2016).

A higher minimum wage, increase the value of Income is not Taxable, and slowing inflation encourages the growth of household spending. The allocation of the NATIONAL BUDGET is higher for the village Fund and better prospects in agriculture will increase income in rural areas.

Government spending for infrastructure will experience an acceleration in the second half of 1999, in line with the annual increase in spending pattern toward the end of the year, but the overall investment and Government consumption will be lower than previously forecast due to low revenue realization. Private investment will benefit from implementing a series of packages of policy reforms that have been announced by the Government.

Some important improvements, among others, the opening of foreign investment opportunities for 35 additional industries, and the business license process has been simplified significantly.

Indonesia’s policy makers need to consider various steps to deal with the risks to growth prospects if there were budget cuts and delays the onset of various infrastructure projects, said the ADB Update.

The report also noted the existence of the weakness in the labor market that could undermine consumer confidence. This latest report noted that there has been a decrease in the number of jobs in the 12-month period up to February 2016, compared to the previous year, although the number of jobs in rural areas increased.

“Although the agricultural sector in the countryside can absorb labor is more because of the delay in harvest season, the labor market for educated workers experienced a stagnation of wages, with the increasing number of higher education graduates who take jobs that do not require qualification as high as they are,” explained Sona Shrestha.

“This trend is occurring simultaneously with the discharge of berketerampilan workers, mainly women, out of the work force,” he said

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, growth that keeps environmental sustainability, and the integration of the region. Established in 1966, ADB will mark 50 years of partnership development in this area in December 2016. The ADB is owned by 67 members — 48 of w next year, although the biggest Southeast Asia economy is facing some challenges short term. According to a new report of the Asian Development Bank (ADB) released today.

In its annual economic publication updates, the Asian Development Outlook 1999, ADB estimate growth of gross domestic product (GDP) in 2016 Indonesia amounted to 5.0%, down from an estimate of the ADB in March amounted to 5.2%, and estimates to 2017 amounted to 5.1%, down from a previous estimate of 5.5%. This forecast reflects the adjustment of the investment spending is lower than previously expected.

“In the midst of a difficult situation, Indonesia’s economy will still grow healthy this year. Increasing national policy reforms in Indonesia and recovering the momentum of growth of the economy the main industrialized nations, likely we will see an increase in the economy further in the coming year, “said Sona Shrestha, Deputy Head of the ADB’s representative in Indonesia, in affidavits, Wednesday (27/9/2016).

A higher minimum wage, increase the value of Income is not Taxable, and slowing inflation encourages the growth of household spending. The allocation of the NATIONAL BUDGET is higher for the village Fund and better prospects in agriculture will increase income in rural areas.

Government spending for infrastructure will experience an acceleration in the second half of 1999, in line with the annual increase in spending pattern toward the end of the year, but the overall investment and Government consumption will be lower than previously forecast due to low revenue realization. Private investment will benefit from implementing a series of packages of policy reforms that have been announced by the Government.

Some important improvements, among others, the opening of foreign investment opportunities for 35 additional industries, and the business license process has been simplified significantly.

Indonesia’s policy makers need to consider various steps to deal with the risks to growth prospects if there were budget cuts and delays the onset of various infrastructure projects, said the ADB Update.

The report also noted the existence of the weakness in the labor market that could undermine consumer confidence. This latest report noted that there has been a decrease in the number of jobs in the 12-month period up to February 2016, compared to the previous year, although the number of jobs in rural areas increased.

“Although the agricultural sector in the countryside can absorb labor is more because of the delay in harvest season, the labor market for educated workers experienced a stagnation of wages, with the increasing number of higher education graduates who take jobs that do not require qualification as high as they are,” explained Sona Shrestha.

“This trend is occurring simultaneously with the discharge of the expert workers, mainly women, out of the work force,” he said

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, growth that keeps environmental sustainability, and the integration of the region. Established in 1966, ADB will mark 50 years of partnership development in this area in December 2016. (Red)

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