Jakarta: Indonesia is expected to be able to maintain economic growth amidst the looming global economic recession by improving the domestic market.
According to the Central Statistics Body (BPS) large and medium industries increased their production amidst global economic slowdown. Besides that, Indonesia has attracted foreign direct investment of 217 trillion rupiah this year.
“This shows that Indonesia’s economy is capable of growing higher in the future by improving our domestic market," CORE Research Director, Piter Abdullah, said on Sunday, November 3, 2019.
He hopes the Indonesian government can improve the domestic market through government and private investment. He believes the government has implemented right policies, such as fiscal incentives and tax cuts.
However, he said that the government must also implement a set of policies that can maintain the country's current account deficit at a low level.
Economist Enny Sri Hartati also said that the Indonesian economy can still grow if the domestic market is massive. The Indonesia government is advised to carry out actions in order to improve the domestic market.
“The government must carry out actions to dispel economic obstacles, from regulatory reform, land reform to human resources development,” she said.
However, Enny added that investors are still experiencing difficulties, especially caused by excessive regulations. (Translator: Muhammad Gestinev)