Indonesia's Economy Lags Behind Vietnam and the Philippines

Indonesia's economy is projected to grow by 5.1 percent in 2017. This figure is lower than the projected economic growth of Vietnam and the Philippines. According to data from DBS Group Research's Daily Breakfast Spread, Vietnam's economy is predicted to grow by 6.6 percent and the Philippines by 6.4 percent. Through the first quarter of 2017, Indonesia's economic growth was only 5.01 percent, while Vietnam's was 5.1 percent and the Philippines' was 6.4 percent.

Meanwhile, in the 2018 State Budget (APBN), the government targets domestic economic growth in the range of 5.4-6.1 percent. This target is also lower than the projected economic growth of Vietnam and the Philippines. Amidst the global economic slowdown, Vietnam and the Philippines have managed to lead the Southeast Asian economy.

However, Indonesia's inflation rate in 2017 and 2018 is projected to be the highest compared to other countries. In 2017, Indonesia's inflation is projected at 4.5 percent, higher than Vietnam's 4 percent and the Philippines' 2.9 percent. Similarly, in 2018, Indonesia's inflation is predicted to reach 5.1 percent, while Vietnam's is only 3.2 percent and the Philippines' is 3 percent.