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

Cotton production and exports in West Africa. Courtesy: FAS/USDA

Textiles | On 23rd Oct 2018

Record cotton production to drive West Africa exports

Cotton exports from West Africa for 2018-19 are projected to surpass...

Courtesy: Prudence Earl on Unsplash

Textiles | On 23rd Oct 2018

Sri Lanka's textile exports up 4.7% in Jan-July '18

Sri Lanka’s earnings from textiles and garments exports increased by...

Courtesy: Mario Crosta

Textiles | On 23rd Oct 2018

'Global textile machinery market may grow at 14% by 2020'

Analysts have predicted that the global textile machinery market may...

Interviews View All

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Top executives, Textile industry

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

John Kelley,

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

C Dhandayuthapani,

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Suresh P Bagrecha,

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Robert Brunner, Devereux

Robert Brunner
Devereux

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

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Madhu Jain, Madhu Jain

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

Leave your Comments


October 2018

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

news category


Related Categories:

Advanced Search