Annual investment growth in 2017 rose to a five-year high of 6.2 percent from 4.5 percent in 2016. The gradual recovery of commodity prices, the continued low financing costs, stronger investor confidence due to the credit rating upgrades, and the jump in infrastructure investment and foreign direct investment, all contributed to the stronger investment growth. Investment in Indonesia now reach a new goal.
An investment-led economic expansion has kept Indonesia’s economy growing at a solid pace, reaching 5.1 percent in the first quarter of 2018, according to the World Bank’s June 2018 Indonesia Economic Quarterly released here today. This is a very good sign for Indonesia investment.
Indonesia’s sound macroeconomic fundamentals continue to provide a solid buffer against rising global volatility. Sound economic management has kept inflation in check and debt levels at about only half of the legal threshold. Investment in Indonesia now reach a new goal.
Indonesia’s progress will depend on crucial structural policies such as those seeking to provide the population with the right skills for the future.
High global commodity prices have spurred higher investment, especially in machine, equipment and vehicles, leading to the fastest growth in gross fixed capital formation in more than five years. The outlook for Indonesia’s economy continues to be positive for the rest of the year with GDP growth projected to reach 5.2 percent in 2018 on stronger domestic demand. Risks to this outlook include continued volatility in global financial markets and disruptions to international trade. This is certainly a good news for investing in Indonesia. Investment in Indonesia now reach a new goal and this goal must be maintained.
(source: World Bank/Indonesia Investment)