Bank Indonesia Deputy Governor Perry Warjiyo has predicted 5.3 to 5.7 percent economic growth in 2019. The increase in economic growth is expected thanks to the economic benefit of ongoing structural reforms. “In 2019, the impact of investment and infrastructure productivity will be very lively. Acceleration of growth will be faster,” he said yesterday, August 25.
Perry said that the recovery of the domestic economy continues. But recovery process is accelerating and coincide with continued stability as evidenced by inflation rate in August which is below 4 percent and current account deficit that remains under control.
According to him, if combined use of monetary policy and fiscal policy go hand in hand with consistent economic structural reforms by the government, economic growth in 2018 will accelerate. “In 2019 it may hit 5.3-5.7 percent and 6 percent in the following years,” Perry said.
Aside from structural reforms, according to Perry, Indonesia needs to step up micro-prudential resistance. “Several years ago, the global crisis arose due to the oversupply of financing, credit, etc.”
He named two aspects that will strengthen domestic economy resistance from outside economic turbulence. First, to strengthen economic fundamentals by seeking sustained macroeconomic stability. Second, to enhance international economic cooperation.