Asian Development Bank Revised Down the Projection of Indonesia Economy Growth

Asian Bank Development(ADB) revised down the growth projection of economy growth to 5% for 2016. Previously in its outlook, ADB assessed that indonesia will reach the 5.2% in term of economy growth.
Official of ADB indonesia steven tabor said aside from down projection of indonesia economy, ADB also revised down malaysia 4.1% and vietnam 6%.

The main cause of this according to ADB is that indonesia economy so far has been only bolstered by consumption and investment while the sluggish export due to low demand of global market making indonesia export is stagnate.
For the inflation,ADB predicted to reach 3.5% and 4% in 2017. Meanwhile the growth of economy of indonesia in 2017 is predictably 5.1% lower than march outlook 5.5%.

There is the possibility of budget cut of and postpones of infrastructure projects due to low revenenue. The government thrusts much on tax amnesty repatriated fund to boost the expenditure but nevertheless the impact will be perceived in 2017. While there is still no incredible achievement of tax amnesty itself which is still far from the target of Rp 165 trillion to be included in revised state budget of 2016.

ADB on the other hand considers the economy package of indonesia will be benefit for long term one of which the opening 35 investment scope will withdraw more investors.