Jakarta - Indonesias economy is predicted to continue to recover in 2018, as indicated by the improvement of motor vehicle and cement sales as well as consumers confidence, Financial Services Authority (OJK) official Bambang widjanarko said.
In a seminar entitled "The Role of Financial Services Authority in Indonesian Economy" in Tangerang City of Banten, on Saturday, he stated that the economic growth potential is supported by investment growth, especially through infrastructure development.
"Foreign investors confidence in Indonesias economic growth is also high, as reflected in the upgraded rating of Indonesia as a state-grade investment firm that previously ranked 41 to 36 (global competitiveness index) and listed as a top improver based on the ease of doing business 2017," he stated.
In the meantime, he added that the bank intermediation performance is predicted to grow in the range of 10-12 percent in line with the growth of economy, third-party fund (DPK), and credit growth.
Nevertheless, credit growth is expected to be in the range of the lower limit of the projection range, considering the process of individual bank consolidation, NPL improvement, and competitive pressure from peer-to-peer lending industry.
Meanwhile, Vice Chairman of the House of Representatives Commission XI Achmad Hafisz Tohir remarked that energy, food, and water security, as basic human needs, are fundamental problems that need to be addressed in the coming year.
"Indonesias economic strategy cannot rely on continued extractive commodities but should rely more on the superiority of higher value industry competitiveness," he pointed out in a seminar held by Magister Manajemen Esa Unggul University Aumni (Esummi).
Another challenge related to Indonesias economic fundamentals is the limited carrying capacity of long-term financing of the formal financial sector in national development.
"In the future, various external and domestic challenges need to be monitored in order to avoid having a negative impact on the Indonesian economy," he noted.
For that, he added that the policy synergies between Bank Indonesia and the government need to be strengthened. The economic policy mix is directed at safeguarding macroeconomic stability and financial system and maintaining the momentum of economic growth, in order to achieve sustainable and long-term economic growth.(*)
Source: Antara News