REPUBLIKA.CO.ID, JAKARTA -- The World Bank estimated that Indonesia's economic growth in 2016 stands at 5.3 percent. However, these projections were accompanied by risks.
The risks were the possibility of rising interest rates of the United States (US), the slowdown in trading partner countries such as China, the weakening in the private sector due to depreciation of exchange rate, a reduction in profit margins, and drought due to El Nino.
Nevertheless, Director of World Bank for Indonesia, Rodrigo Chaves, stated that economic growth in Indonesia was better than other commodity-exporting countries.
"Pro-active government policy is a good practice to be able to strengthen the confidence of investors," he said, in Jakarta, Thursday (22/10).
In recent report, the World Bank said that efforts taken by the Government of Indonesia, such as giving stimulus, reforming policy, and improving quality of government spending, was effective in dealing with current global economic slowdown.
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