Better Foreign Investments, Domestic Production to Boost 2017 Economy
Indonesia needs to work harder on its domestic production as well as foreign investments to survive a weak global economy as well as boost its economic growth by 2017.
This kind of is usually the main message of former foreign minister as well as economist Muhammad Chatib Basri during the UOB Indonesia Economic Outlook 2017 on Wednesday, November 16.
Recently, Bloomberg reported that will Indonesia’s gross domestic product (GDP) grew 5.02 percent from the third quarter compared to the same time last year. This kind of also expressed a third-quarter GDP increase of 3.2 percent than the previous quarter.
Bank UOB of Indonesia also foresees an increase of 5.2 percent growth year on year by 2017, an increase through 5 percent This kind of year. This kind of forecast is usually better than the estimated global growth of 3 percent per Moody.
However, President Joko ‘Jokowi’ Widodo hopes to accelerate the growth to more than 6 percent in 2018. To do This kind of, Basri recommends increasing domestic production as well as strengthening foreign investments.
Basri added that will a Great measure to boost productivity is usually to develop central-government-controlled cash-for-work programs. This kind of can encourage faster as well as more infrastructure projects as well as compensate for the delayed effects of increased economic policies like the creation of vocational training.
Former Foreign Minister as well as Economist Muhammad Chatib Basri
See: Foreign Investors Struggle With Indonesia’s Economic Policies
As for foreign investments, Chatib noted “more must be done” to match a GDP of 6.6 percent, which, in turn, can help the country’s economic growth by a percent.
In June, the Indonesian government released a revised Negative Investment List, which removed the cap for telecommunication equipment certification, hospital consultancy services, crumb rubber as well as raw material manufacturing for pharmaceuticals, among others. To leverage its thriving tourism industry, the country also permitted 100 percent foreign ownership on many leisure- as well as entertainment-related activities like film production as well as restaurant as well as bar operations.
although additional growing sectors are subject to certain conditions. E-commerce, which is usually anticipated to earn $25 billion This kind of year, can be owned fully by foreigners only if the investment is usually worth more than USD7.45 million (IDR100 billion). Otherwise, This kind of’s capped at 49 percent. Some industries such as gambling as well as production of alcoholic beverages remain closed to foreign investment.
Image credits: Wikimedia, Forbes
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Better Foreign Investments, Domestic Production to Boost 2017 Economy
Better Foreign Investments, Domestic Production to Boost 2017 Economy