Indonesian President Joko Widodo predicted economic growth will be in 5.04-5.05 percent at the end of 2019 - Photo: Special.

JAKARTA (TheInsiderStories) – Indonesian President Joko Widodo predicted economic growth will be in 5.04-5.05 percent at the end of 2019. It is lower than the prediction in the state budget of 5.3 percent, the head of state said at the CEO Forum event in Jakarta on Thursday (11/28).

He asserted global uncertainty has still shadowed Indonesia’s economy that impacted to the slowdown economy growth, not only to Indonesia but for a global scale. Moreover, the International Monetary Fund (IMF) predicted the slowdown economy could worsen due to unfinished existing problems.

However, the 5 percent economic growth is still above the majority of G20’s countries, except China and India.

“All of the countries in the world face the external uncertainty, therefore we need to focus on facing the external challenge while growing the optimism,” the president said.

Meanwhile, Widodo also believed they could solve the current account deficit (CAD) which has burdened Indonesia’s economy. He elaborated several ways to accomplish this problem, one of them is to increase export and import substitution products.

The improvement of export and import is the most important part as Indonesia is very dependent on raw material export which easier to affect with global commodities prices. On the other hand, Indonesia also prefers to import oil and gas than optimize them in the country.

“It is a long-time problem, but with economic transformation, we can solve the CAD’s problem within three or four years,” he conveyed.

Furthermore, Widodo also instruct capital investment coordinating board to attract more foreign direct investment. One of the way is through tourism.

Meanwhile, for next year, the Indonesia government strived to bring the economy to grow to 5.6 percent. The figure mainly supported by investment which is expected to increase by 7.0-7.4 percent and exports rose at 5.5-7.0 percent.

On the supply side, economic growth is expected to be supported by the industrial sector which will increase between 5.0-5.5 percent. While the unemployment rate is expected to fall to 4.8-5.0 percent, accompanied by a reduction in the poverty rate in the range of 8.5-9.0 percent.

To achieve the target, Coordinating Minister for the Economy Airlangga Hartarto said the government had mapped out strategies and priority steps to be taken to face economic challenges in 2020, both internally and externally.

First, the government will increase economic growth through structural transformation to strengthen domestic demand and international trade performance.

Second, maintaining macroeconomic stability by positioning domestic prices and the exchange rate at a stable and competitive level. Third, increase inclusiveness and a sustainable economy.

“Increasing competitiveness is also one thing that is the focus of attention. Sustainable economic growth is also needed to get out of the poverty line and encourage human development,” Hartarto said.

Regarding investment, the government will optimize the online single submission system, increase the effectiveness of the investment acceleration task force, relax the negative investment, and approve investment priority sectors, Hartarto noted.

Written by Staff Editor, Email: theinsiderstories@gmail.com