TEMPO Interactive, Jakarta: Indonesia’s economic improvement in 2007-2008 will continue rising.
This optimism has been stated by the Country Director of Asia Development Bank (ADB) Edgar A. Chua.
According to ADB's predictions, the growth in Indonesia's economy this year is estimated to reach six percent of GDP, while the following year growth will be higher at 6.3 percent.
“This is the highest growth within the last decade of Indonesia's economic development,” said Cua in Asia Development Outlook 2007 at the ADB office in Jakarta.
Growth is supported by a decrease in interest rates that will boost investment and more consumption.
The surplus of the government's balance of payments is predicted to fall by between 1 percent and 0.7 percent against GDP.
Despite this high economic growth, the unemployment rate has not yet decreased significantly.
Therefore, Indonesia needs some large investment projects as the catalysts: for instance, infrastructure projects.
“Infrastructure must be continuously stimulated,” said Cua.