REPUBLIKA.CO.ID, JAKARTA -- Economist of University of Indonesia, Faisal Basri, estimated that Indonesia's economy may accelerate to 5.4 percent in 2016, despite pressure from the global economic uncertainty was believed not to completely subside.

In a radio discussion held in Jakarta, Wednesday (16/9), Faisal said investment flows, that were expected to grow by 6.0 percent in 2016, would be the biggest driver of growth.

"The impact of the deregulation of the investment license will be felt next year," he said.

Faisal welcomed the government's plan to accelerate the realization of the government's budget expenditure. However, in the rest of 2015 that only three months away, the stimulus of realization of the government budget would not help the economy significantly.

"We can't escape from private investment, the deregulation must be serious," he added.

In addition to the investment, household consumption would also sustain the economic growth in 2016. If only, the government was able to restore people purchasing power and to raise household consumption up 5.0 percent, after falling to 4.9 percent in the second half of 2015.

Faisal said that one effective policy to restore the purchasing power was the reduction in premium fuel. On the other hand, the trend of world oil prices continued to decline.

According to the Ministry of National Development Planning, economic growth in 2016 might reach tentative assumption in the draft state budget 2016, to 5.5 percent, as long as consumption and investment climate were well preserved.

The government must also be able to execute the fiscal budget and develop appropriate programs and policies, such as restoring people purchasing power.

"Investment and consumption will be highly visible transmission, related to the stability of rupiah. If the rupiah is not stable, then the motive investments be lower, and if the purchasing power is low and the domestic market depressed, then the investment will be difficult to get in, because there is no demand," said Expert Staff of Ministry in Economic Synergy and Finance Development Ministry, Bambang Prijambodo, on separate occasion.

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