World Bank: Indonesia economy growth and risk to encounter due to global down trend and tax amnesty

thediliweekly.com

The senior economist of world bank hans anand beck assessed the growth of economy of indonesia will continue to increase from 4.8% in 2015,  5.1% in 2016, 5.3% predictably in 2017 and 5.5% in 2018.

World bank sees that the trend of economy growth in pacific and east asia's countries continue to regularly rising. It is  initiated at least by three countries especially in east asia such as india, china and indonesia. However, china as the main influencer  in east asia economy will be predicted to have slight down trend for 3 consecutive years to come.

Hans anand beck considers that the economy trend of indonesia is much affected by the economy revolution initiated  by the term of incumbent president jokowi of which the released economy packages and particularly the tax amnesty which is lucrative for long term.

The world bank economist underlines the risks to encounter by indonesia both negatively and positively. 

The good news is that the tax amnesty recognized as the best ever globally will have a positive prospect. The repatriation of fund by indonesia will create opportunity for investment hence boost the economy growth in term of macro. In its end of first period precisely tax amnesty traced incredible success of surpassing the expectation of government though the total repatriation from overseas asset is still minim.

The negative impact however is more on the impact of global downtrend economy. One of which the excitement to wait for  the plan of interest rate increasing of fed will affect the global market including indonesia. In fact, fed it self according to hans has to be prudent with the plan considering the effect for USA economy and globally in general term.

Meanwhile, indonesia also will not lean much in the exporting sector. This is due to low demand of commodity of export on account of sluggish global economy trend. There is recent continuous down trend of export sectors especially from the main destination of export such as europe, USA and china. Nevertheless, the price of global commodity will recover slowly but not dramatically like the periods before 2014.