Stable RI economy not enough: WB<\/p>\n
Berni K. Moestafa, The Jakarta Post, Jakarta<\/p>\n
A stable Indonesian economy is not enough to generate the
\ninvestment needed to effectively fight poverty, because investors
\nare also looking for legal certainties and a better investment
\nclimate, according to the World Bank on Wednesday.<\/p>\n
World Bank country director Mark Baird said Indonesia had done
\nwell in maintaining macroeconomic stability, which he said, was
\nessential to attract investment.<\/p>\n
\"But investors are also looking for more fundamental reforms
\nto strengthen the rule of law, protect property rights, provide
\nan effective judicial system, and reduce corruption,\" Baird said
\nin his speech before a conference on social development, held by
\nthe World Bank and the Association of Southeast Asian Nations
\n(ASEAN).<\/p>\n
Based on World Bank estimates, at least 30 million Indonesians
\nlive below the poverty line.<\/p>\n
\"Indeed, the majority of Indonesians are poor or vulnerable to
\nbecoming poor,\" he said.<\/p>\n
Baird said to fight poverty, economic growth is essential.<\/p>\n
Every year, a further two million people become economically
\nactive, creating a need for more jobs, he said.<\/p>\n
Economists said Indonesia's economy needed to grow by five to
\nseven percent a year if it was to absorb the new jobseekers.<\/p>\n
Last year, the economy is estimated to have grown by only 3.5
\npercent, with the same rate expected for this year or four
\npercent at best.<\/p>\n
Investment spurs economic growth, but the outlook for new
\ninvestment has been mixed so far.<\/p>\n
Foreign investors have kept away in droves because of the
\ncountry's highly unpredictable business climate.<\/p>\n
That can be blamed on the legal uncertainties stemming from a
\nweak judicial system, and authorities who often fail to impose
\nlaw and order.<\/p>\n
With the global economic slump, the government expects little
\nfrom foreign capital to generate economic growth.<\/p>\n
The state budget, shouldered with massive payments on
\nsubsidies, and foreign and domestic debts, has long lost its
\nstimulating power in the economy.<\/p>\n
Only local private investment is seen growing, albeit slowly,
\nas most of the banking sector has still a long way to go before
\nit recovers to similar conditions prior to the 1997 economic
\ncrisis.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/stable-ri-economy-not-enough-wb-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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