After the 10th Annual Cycle, This is the Economic Outlook of Indonesia in 2019
Chika JIC - Tuesday 21th May 2019
In addition to the political year, 2019 is a new year after the 10 year economic shock cycle for Indonesia. As is known, in 2008, the world economy experienced a strong crisis shock because it was triggered by the financial crisis that occurred in the United States (US). All countries were also shaken by the economic crisis in US, including Indonesia. Ten years after that, precisely in 2018, the world economy also experienced shocks, especially after the US central bank, the Federal Reserve (The Fed) raised its benchmark interest rate several times. This put pressure on currencies in a number of countries including Indonesia, which depressed the Rupiah to reach the level of Rp. 15.000/US$. Then what is the economy outlook for Indonesia in 2019?
According to the Senior Deputy Governor of Bank Indonesia, Mirza Adityaswara, there are three things that have become the focus of Bank Indonesia. First, BI wants to keep the current account deficit to the level of 2.5 percent of GDP. Second, Bank Indonesia are focused on the development of the benchmark interest rate in the US which according to Mirza has almost reached its peak. Last, Bank Indonesia will ensure adequate liquidity in banks in order to support economic growth.
Bank Indonesia’s projection, economic growth in Indonesia in 2019 is estimated to keep raising to reach the range of 5.0-5.4 percent with inflation still under control at the target range of 2.5-4.5 percent. Nevertheless, next year Indonesia’s economy still faces several challenges. These include the rebalancing of global commodities as a result of The Fed’s steps in normalizing its policies.