World Bank Cuts Indonesia's Economic Growth Forecast
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The World Bank has lowered its prediction for Indonesia's economic growth in 2019 to 5.1%. This is lower than the previous prediction of 5.2%. Furthermore, a decrease also occurred for 2020 economic growth, revised from 5.3% to 5.2%.
This reduction is influenced by both external and internal conditions. The World Bank's Chief Economist for Indonesia, Frederico Gil, mentioned that negative sentiment from the US-China trade war still persists. Although it has eased somewhat due to the meeting between the two countries at the G20 Summit in Osaka, Japan, Sander anticipates slower Chinese economic growth in 2019, impacting Indonesia's economy.
Meanwhile, internal factors are influenced by a weakening trend in exports of Indonesia's main commodities, such as crude palm oil (CPO) and coal. Furthermore, import growth remains weak, in line with the slowing pace of investment. Despite the slowdown, investment growth is expected to remain strong due to reduced political uncertainty following the Presidential Election dispute resolution by the Constitutional Court (MK).
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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