Indonesia's economy is projected to grow 5.3 percent in 2018.

The International Monetary Fund (IMF) has lowered its projection for Indonesia's 2017 economic growth to 5.1 percent, down from its previous forecast of 5.2 percent. Meanwhile, the IMF projects 5.3 percent growth for next year. This figure is below the government's target of 5.4 percent. Indonesia's economic growth for the first three quarters of 2017 reached 5.03 percent year-on-year (YoY).

According to the IMF, the Indonesian economy remains positive compared to other countries. Growth continues to perform well, supported by cautious macroeconomic policies, increased global growth, and rising commodity prices. To achieve the 5.3 percent growth target, the government must maintain fiscal discipline, control inflation, and ensure macroeconomic stability.

Previously, United Overseas Bank (UOB) also predicted that the Indonesian economy would grow by 5.3 percent, supported by strong economic fundamentals. Domestic economic fundamentals are supported by private consumption, investment spending, and sustained export performance. In the third quarter of 2017, private consumption demand grew steadily at around 5 percent (YoY).