World Bank Projects 5.5% Growth for Indonesian Economy in 2019

The World Bank projects Indonesia's economic growth to reach 5.5 percent in 2019. In its report, *Global Economic Prospects*, the World Bank states that Indonesia's economy grew above 5 percent from 2017 to 2019. For 2016, Indonesia's economic growth is predicted to have been 5.1 percent, rising to 5.3 percent in 2017.

Indonesia's improving economy, according to the World Bank, is supported by private investment and an improved global economic outlook. Lower non-tariff barriers in developed countries can boost regional trade, benefiting developing countries like Indonesia. However, issues such as licensing problems, restrictions on foreign ownership, and high service costs can suppress investment flows into Indonesia.

In the 2017 State Budget, the government targeted domestic economic growth of 5.1 percent. The International Monetary Fund (IMF) projected Indonesia's economic growth at 5.3 percent, while the Asian Development Bank projected 5.5 percent. International rating agencies Standard & Poor's also predicted 5.2 percent growth, Moody's 5.2 percent, and Fitch Ratings 5.5 percent.