Home / Knowledge / News / Textiles / Indonesia's economic resilience boosted by reforms: WB
Indonesia's economic resilience boosted by reforms: WB
22
Jun '16
Even as the World Bank has lowered its growth projections for the world by half a percentage point to 2.4 per cent, Indonesia's economy is forecast to grow by 5.1 per cent thanks to continued policy reforms that have helped to counter the impact of slow growth.

“Prudent monetary policy, increased public investment in infrastructure, and policy reforms to improve the investment climate, are helping Indonesia maintain growth in the order of 5.1 percent,” said Rodrigo Chaves, World Bank Country Director for Indonesia, in the June 2016 edition of the Indonesia Economic Quarterly released by the World Bank.

According to the report, Southeast Asia's largest economy continues to prove resilient with GDP forecast to grow 5.1 per cent, mainly due to private consumption and public capital spending.

But weaker than expected global economic expansion may moderate its growth recovery although continued policy reforms can help counter the impact of slowing demand and financial market volatility globally, said the report entitled Resilience through Reforms.

Numerous policy reforms have been announced since September 2015, and there appeared a shift in trade and investment policy towards deregulation. However, it is not yet known whether effective implementation of policy changes is taking place, and many sectors remain closed or partly closed to foreign investment.

Increased private sector investment is essential for Indonesia, as pressures on public revenue may curtail the government's plans for much more infrastructure investments, which have supported economic growth. However, even with a lower revenue forecast and a larger fiscal deficit of 2.8 per cent of GDP, World Bank calculations show that 90 per cent of the original 2016 Budget investment target could be achieved.

While private consumption growth remained resilient at 5 per cent year-on-year, slowing growth in fixed investment due to reduced government spending has contributed to Indonesia's real GDP growing at 4.9 per cent year-on-year in the first quarter of 2016. Weak global demand continues to put pressure on exports, the report noted.

Currently, Indonesia's manufacturing exports are dominated by 'low-tech' products and operations are focused mainly on blending and assembly, making the country vulnerable to changes in a multinational corporation's location strategy. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X