Indonesian Economy Faces Big Challenges

What are the big challenges that meet in Indonesia economy finance in 2019? The global trade war is a war that kicked between the US and China. The trade war gives a rising concern about global economic growth as well as with the impact of the cost of import in the global supply chain.

The second challenge that meets with Indonesia global finance economy is the wide current account deficit. This due to the appetite to the crude oil imports. The deficit undermines to the confidence from the investor to an asset of Indonesia and then put the pressure on Rupiah and it leads as dependent external factor flows to Indonesia finance into external deficits.

Interest rate environment. On another side, the government efforts to defend rupiah significantly raise the interest rate over on the earlier past quarter of 2018. The higher lend cost can affect the reduced appetite into credit and becomes implication for the subdued of Indonesia credit growth remaining.

The presidential and legislative elections in 2019. The next battle that faces in the legislative and presidential election in 2019 can impact the financial economy in Indonesia globally.  Prabowo Subianto as the rival from incumbent President Joko Widodo will meet with the competitive fight with his rival. Joko Widodo has open reform-minded and leads perception to battle as it gives impact to the uncertainty of political makeup and the economy orientation in 2019.

After all, the Indonesia Investments maintains in rate 5, 2 % year to year growth projection in Indonesia economy 2018. In general, we hope and believe that the economy in Indonesia will continue to show the modest acceleration growth with a year to year basis (as it has usually done in past recent years). However, there still an opportunity to downgrade into 5.15% year to year in closest future consider to the challenging context beyond. (berbagai sumber; photo credit: unsplash.com)

 

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