World Bank Projected The Indonesia Economy Growth 5.1 in 2016

It is almost a semester already behind manifold of economy problems with the country, president has made massive reformation in terms of infrastructure, bureucracy,  a good climate of investment. After the disappointment of incapable to reach the target during the first quarter, the world bank precisely brings optimism that Indonesia can reach the growth of 5.1 percent in 2016. 

According to World Bank Country Director in Indonesia,  Chaves said, Indonesia was better than Brazil and Mexico.

"The recovery is not due to natural resources, but policy reform," said Rodrigo in a World Bank report, Indonesia Economic Quarterly June, in the Auditorium of the Ministry of Trade, Jakarta, Monday (06/20/2016).

Private consumption is expected to rise slightly due to moderate inflation, relatively stable rupiah, lower energy prices, the estimated increase in taxable income and salaries of all 14 for civil servants.

The World Bank estimates that inflation in 2016 is quite low at 3.9 percent. However, Rodrigo government warned of the potential price fluctuation, mainly of food commodities, especially in the months of festivals.

Government expenditures are projected to increase in the following three quarters-I in line with historical trends.

World Bank calculations show that 90 per cent of the Budget 2016 investment target can be achieved with the revenue projections were even lower than the 2016 revised state budget.

Jokowi's cabinet has been performing of reformation in policy, infrastructure, commodity,agriculture. For the first time jokowi opened the rail way trans celebes and toll trans papua, toll trans sumatra that have never been done by presidents before. Though the government was criticized for over expenditure while not supported by the revenue, jokowi still boost his minister not to let the massive infrastructure  stagnant. He is quite confident of long prospect that can be reaped by the massive infrastructure namely to make the systemic distribution of goods all over the country's regions. One of the campaign of government is to make the sea toll as the main resolution for equitable distribution so as to solve the different margin of goods' prices in regions and provinces like sumatra or west papua. 

The world bank sees the policy and reformation of jokowi as the main reason to boost the fast economy growth. Though encountered by little challenges like low commodity, it will not  be much obstacle to reach the 5.1 economy growth. On the other hand, The world bank advised the country to be more serious in sevices and manfucature sectors that are not much concerned for 10 years. This will be a right timing for indonesia to engage more in these two vital sectors that will be  beneficial for economy growth.