Standard Chartered Bank projects the Indonesian economy to grow higher this year. The London-based financial institution projects that the Indonesian economy will grow 5.1 percent by 2020, higher than last year’s projection of 5 percent.
“We expect growth to increase in the second half of 2020 along with the momentum of increased investment,” Senior Chartered Bank Indonesia Senior Economist Aldian Taloputra said in an official statement in Jakarta, Wednesday, January 15, 2020.
This 5.1 percent growth is also projected to occur because household consumption is recovering from price adjustments and the disappearance of the high base effect from last year’s elections. “We also project stable growth in household consumption with a healthy labor market,” Aldian said.
The projected figure from Standard Chartered is slightly higher than the Organization for Economic Cooperation and Development (OECD) projection of only 5 percent. However, it is lower than the government’s projection in the state budget of 5.3 percent.
Meanwhile, Indonesia’s economic growth is also in line with the growth of the global economy next year. Standard Chartered economists project that next year’s global economy will grow by 3.3 percent, slightly higher than last year’s estimate of 3.1 percent.
This growth projection occurs because China is likely to stabilize at a minimum level to double their GDP by 2020. “We also predict the US economy will slow further to 1.8 percent by 2020, and the growth of the Euro area remains weak,” said the Global Chief Economist Standard Chartered David Mann