Indonesia: New Investment Can Spur Economic Growth in 2018, BI Says

• May 20, 2017

TEMPO.CO, Jakarta – Central bank Bank Indonesia said the government`s economic growthtarget of 5.4 to 6.1 percent in 2018 could be achieved by increasing the realization of new investment, especially for productive sectors.

Head of BI Monetary and Economic Policy Department Kepala Dody Budi Waluyo in Jakarta on Friday said contribution from new investment realization from corporates and private sectors would help to accelerate economic growth and creating new economic activities in order to maintain the supply of goods when people’s income increase.

With the new investment, Dody said, high economic growth can be achieved and tue increase in inflation pressure due to the growing people’s income can be anticipated.

“The key is new investment. New plants or machines won’t create inflation,” he added. 

BI has not announced its projection for economic growth in 2018. As for this year, the central bank forecasts that economic growth would range between 5 to 5.4 percent.

Source: https://en.tempo.co/read/news/2017/05/20/056877082/New-Investment-Can-Spur-Economic-Growth-in-2018-BI-Says