Thursday, May 4, 2017
Indonesia’s economic outlook.
Three years into his presidency, President Joko ‘Jokowi’ Widodo has yet to achieve his campaign promise of boosting annual GDP growth to 7%. In the two years remaining before his term ends in 2019, weaker global growth and lower commodity prices will make this growth target impossible to achieve.
- A sharp rise in investment is unlikely in 2017 and 2018 due to regulatory uncertainties.
- Regulations in sectors such as oil and gas, and mining, will be altered in line with economic needs and political compulsions.
- Indonesian exporters face a risk of increased US protectionism in sectors such as biodiesel.