GDP growth may hit 8% in 2005: Djisman<\/p>\n
Johannes Simbolon, The Jakarta Post, Jakarta<\/p>\n
After years of an economy in crisis and slow growth, Indonesia
\nis poised to record an accelerated growth rate starting in 2005,
\naccording to a local economist on Tuesday.<\/p>\n
The strong rebound will come on the back of global recovery
\nand regained confidence in the government after the completion of
\ngeneral elections in 2004, Djisman S. Simandjuntak, executive
\ndirector of Prasetiya Mulya Business School, said.<\/p>\n
\"No matter who wins the presidential election, Indonesia will
\nbe heading for a strong economic rebound,\" Djisman said in a
\npresentation at The Jakarta Post.<\/p>\n
With a steady decline of investment and the domestic
\nconsumption being the main factor behind the slow economic growth
\nover the past several years, Indonesia has reached the bottom of
\nthe economic slump, so has likely seen the worst of it.<\/p>\n
\"Nothing is worse than our situation now,\" he said.<\/p>\n
Once the general elections are over and Indonesia has its
\npresident, gone will be many of the worries over political
\nuncertainties which have thus far made many businessmen and
\ninvestors reluctant to bring most of their funds into the
\ncountry.<\/p>\n
Capital owners who took their funds out of Indonesia in the
\naftermath of the economic crisis have started bringing back their
\nmoney back to Indonesia, which is among others reflected in the
\nincreasing number of shopping center projects across Jakarta,
\nDjisman said. However, they are still reluctant to bring back
\nmuch of the funds on worries over general elections next year.<\/p>\n
Djisman said not only the previous investors will come back
\nIndonesia, but also new investors, who are attracted to the huge
\nmarket potential of the nation.<\/p>\n
\"We deserve higher foreign investment,\" he said.<\/p>\n
Djisman is optimistic that the 2004 elections would go
\nsmoothly and the current President, Megawati Soekarnoputri would
\nface no serious challenges in her bid to be reelected. If
\nreelected, Megawati will have no other option but to improve the
\ncorrupt government.<\/p>\n
\"The quality of the government is going to improve, because
\nnothing is worse than the current situation,\" Djisman explained.<\/p>\n
The bright outlook on the political scene coupled with global
\nrecovery is likely to enable Indonesia to reach a high economic
\ngrowth of 8 percent in the years starting from 2005 as the
\ncountry did during the \"positive shock of the economy\" in the
\nperiod of from the late 1960s to early 1970s.<\/p>\n
After this new \"positive shock period\", the economic growth
\nwill be stay at a high rate of around 7 percent.<\/p>\n
Several international agencies have predicted that after the
\ngeneral elections, Indonesia will record a brisker economic
\ngrowth along with the global recovery.<\/p>\n
The Organization for Economic Cooperation and Development
\n(OECD) in its latest Economic Outlook released late last month
\ndeclared that the global slump had been over and the global
\neconomy was heading for strong growth in the coming years. It
\npredicted growth should pick up to near five percent by 2005 in
\nthe wider Asian region comprising China, Indonesia, Thailand,
\nSingapore and the Philippines.<\/p>\n
Earlier, the World Bank predicted the Indonesian economy to
\ngrow by 4 percent next year. After the general elections, the
\ngrowth will get progressively stronger at 4.5 percent in 2005 and
\n5 percent in 2006.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/gdp-growth-may-hit-8-in-2005-djisman-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}