Indonesia: Economist Reveals Economic Growth Boosters

Toni Prasetiantono, an economist from Gadjah Mada University (UGM) in Yogyakarta pointed out three major factors that can maintain and even boost the national economic growth.

Speaking at the Indonesia Outlook 2017 at UGM on Friday, December 16, 2016, Toni said that the three factors could provide opportunities for the Indonesian government to maintain and improve the economic growth above the target.

The first factor is the impact of US president-elect Donald Trump’s policy that according to economists may disturb the world’s economy. Toni said that such a policy may also have impacts on Indonesia.

“Many economists believe that Trump will not deliver his promises he made during his campaigns when running the office. It’s because his leadership style when running a business would be different from that when running a government,” Prasetiono explained.

The second factor, Toni went on, is the impact of Indonesia’s commodity prices, namely oil and gas, as well as coal. Toni explained that coal miners had started to enjoy profits after the price significantly plummeted to US$50 per ton. 

Currently, coal prices exceed US$100 per ton, giving a hope for coal miners to reap optimum profits.

The final one is the implementation of the tax amnesty program that must be improved, as the funds collected from the program remain below the target.

Source: http://en.tempo.co/read/news/2016/12/16/056828396/Economist-Reveals-Economic-Growth-Boosters