JAKARTA, Jan. 19 (Xinhua) -- With its Gross Domestic Product (GDP) growth estimated to be at 5.5 percent and global economic recovery probable in 2010, Indonesian economy would become more resilient, a senior economist said here on Tuesday.
Taimur Baig, a senior economist at the Germany-based Deutsche Bank, said that backed by sustainable economic growth and strong domestic financial market, Indonesia has been relatively immune from the impacts of global financial crisis in 2009.
Citing the Deutsche Bank's research result, he predicted that Indonesia's economic growth would reach 4.3 percent, spurred largely by domestic consumption growth.
He added that Indonesia's economic growth would likely be boosted by investment and trade.
"Augmented by the improving outcomes in agriculture and manufacturing sectors throughout last year, Indonesia would have undoubtedly strong stepping stone to enter 2010," Taimur said.
Taimur also predicted that Indonesia would see inflation rate this year at a range of 4 to 6 percent, which is initially predicted by the Indonesian central bank (BI).
"Appreciation of Rupiah's value and tightening of monetary policy would be major factors to control inflation, so as to keep (inflation) in the BI's estimation rate range," according to Taimur.
Indonesia saw inflation rate below 5 percent last year.
Based on these reasons, Deutsche Bank was convinced that Indonesia would be no longer vulnerable to the impacts of capital outflows like before, he said.
With lending rate benchmark estimated to be at 7.5 percent later this year, he predicted that Indonesian banks' loans would grow by 18 percent in 2010, largely contributed by increasing government's spending and infrastructure development.