ADB Projects RI’s Economy to Grow by 5.1 Percent in 2017

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 1 Februari 2017
Category: News
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President Jokowi receives a delegation of ADB, at the State Palace, Jakarta, Wednesday (1/2) morning. (Photo: PR/Rahmat)

President Jokowi receives a delegation of ADB, at the State Palace, Jakarta, Wednesday (1/2) morning. (Photo: PR/Rahmat)

President of the Asian Development Bank (ADB) Takehiko Nakau lauded the Indonesian Government over its economic policies that have been taken in the midst of global financial uncertainty. This was delivered by Nakau after President Joko ‘Jokowi’ Widodo received him and a delegation of ADB, at the State Palace, Jakarta, Wednesday (1/2) morning.

Along with the continued improvement of private investment and the consumption level that is still strong in Indonesia, the ADB estimated that Indonesia’s economy will grow by 5.1 percent in 2017, up from 5.0 percent in 2016. Meanwhile, inflation rate is predicted to rise slightly from last year’s of 3.5 percent to 4 percent in 2017. “I am very impressed with the Government’s strong commitment to policy reforms that lead to an increase in market confidence and more Indonesian people to benefit economic improvement,” Nakau said as quoted from the ADB press release distributed to journalists after the ADB President met with President Jokowi.

The ADB President also expressed its confidence in the economic outlook for Indonesia, and reiterated its support for the Indonesian Government’s efforts to foster inclusive growth. Nakau also supported a series of policy reforms in various fields aimed to increase investment, strengthen competitiveness, and diversify the economy. Such programs were 14 Economic Policy Packages which have come into force since September 2015, tax amnesty program, the development of clean energy sources, the development of inclusive financial sectors, as well as educational programs and vocational training.

When it comes to vocational training, Nakau supported the Indonesian Government’s efforts in improving the excesses, quality and relevance of education programs to fit the needs of the workforce. To that end, Nakau is scheduled to visit several polytechnics in the field of shipping and electronics that receive the ADB assistance in Surabaya.

Third Visit

Meanwhile, Indonesian Minister of Finance Sri Mulyani Indrawati said that the visit, which is Nakau’s third visit to Indonesia, aimed to look at the development in Indonesia and also to convey the thoughts of the ADB, and anything that is supported both in terms of the concept of development itself and the development funds.

“As you may be aware of, the ADB is an institution established since 1966 in which Indonesia is one of its stakeholders. Indonesia as a member of ADB has a share of stock which is quite large, and we are a member as well as a borrower of ADB,” Sri Mulyani told reporters along with Minister of State Secretary Pratikno who accompanyied President Jokowi receiving the President of ADB.

During the meeting, according to the Finance Minister, President Jokowi explained various matters related to economic progress in Indonesia, and the current and future challenges facing Indonesia. “(the matters being discussed) Starting from the policy established by the Government to improve the investment climate, infrastructure, tax amnesty program to programs to resolve or reduce inequality and poverty, which is the focus of the talks,” the Minister said.

The Minister added that the President also gave the example of Smart Indonesia Card (KIP), Healthy Indonesia Card (KIS), and how to target the people, particularly the poor.

According to the Minister, during his visit to Indonesia, the ADB President Takehiko Nakau will visit two polytechnic supported by the ADB in Surabaya, one in the field of shipping and the other in the field of electronics. “What was discussed is consistent with the President’s focus to enhance more vocational trainings and schools in Indonesia,” the Minister concluded. (FID/ES) (MUR/YM/Naster).

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