JAKARTA (TheInsiderStories) - President Joko Widodo expressed his optimism that Indonesia’s economy will improve in 2016 compared to last year, which is likely to have recorded growth of 4.73 percent.
“I am optimistic that the year of 2016 will be far better than in 2015,” the President said when opening the 2016 first day trading of the Indonesian Stock Exchange.
He said last year was a “very difficult year” for all, including the financial sector due to slowdown of world economy, a rise of the Fed interest rate and other factors. Despite difficult condition, the state revenues reached Rp1,491 trillion or 84.7 percent of target, tax revenues reached Rp1,235 trillion or 83 percent of target, while non tax revenues reached Rp252.4 trillion or 92.8 percent from target.
He said these difficult situation prompted the government to issue various economic deregulation packages to overhaul the country’s economic landscape. “This year everyone must believe that our economy will be better off. That’s the key,” President Joko widodo said.
He said the government is determined to maintain inflation rate at below 5 percent this year by maintaining the supply and demand of goods, while GDP growth is expected to reach 4.7-4.8 percent compared to 4.73 percent in 2015.
Meanwhile, Chairman of Financial Services Authority (OJK) Muliaman Hadad said the total value of funds mobilized through the capital market in 2015 - through IPO, rights issue and bonds — reached Rp117 trillion up 20.8 percent from previous year, while government bonds (SUN) reached Rp352 trillon.
“With an expected improved economic condition in 2016, there is greater opportunity this year (for companies and the government) to mobilize funds from the capital market,” he said.
He said the regulator is determined to deepen the country’s market and encourage more IPOs as well as raise the number of investors. (*)