Indonesia’s Chamber of Commerce, Kadin Expects Economy to Grow 5.8% This Year

 

Executives of business lobby Kadin during a meeting with President Joko Widodo at the State Palace in Jakarta on Tuesday. Suryo Sulisto right of President (Antara Photo)

Jakarta. Indonesia’s economy could grow by up to 5.8 percent this year, despite slower global growth, according to executives of the nation’s most influential business lobby.

Suryo Bambang Sulisto, chairman of the Indonesian Chambers of Commerce and Industry (Kadin), who led a delegation to meet President Joko Widodo at the State Palace on Tuesday, said the chamber was optimistic that economic growth in the country could reach 5.8 percent this year, compared with the 5.7 percent target set in the 2015 state budget.

“We’re optimistic [about economic growth]. With good cooperation [with the private sector] and supported by the right policies, such a level of growth can be achieved,” Suryo said.

They met with Joko to inform him about several issues, including Kadin’s plan for a national leadership meeting in early March, general economic conditions and overall challenges of doing business in the country.

Kadin explained to the president that overlapping regulations, taxation and land acquisition hurdles were still the biggest factors hampering investment realization.

James Riady, Kadin’s deputy chairman for commerce, education and health, said strong economic growth would only be achievable if the country maintained a sound investment climate.

James, who is also chief executive of the Lippo Group, said the president conveyed his confidence that his administration would be capable of boosting growth from last year’s 5.1 percent to about 5.8 percent this year.

“If this could happen, it would be an achievement for Indonesia,” James said.

The International Monetary Fund on Jan. 20 trimmed its 2015 global economic growth forecast and called on governments and central banks to adopt accommodative policies and structural reforms to support faster economic growth.

In its latest World Economic Outlook report, the fund projects global growth at 3.5 percent for 2015 and 3.7 percent for 2016. That is 0.3 percentage point lower than the previous forecast for both years.

Still, Indonesia remains an attractive investment destination to foreign investors.

In its first-quarter Economics Markets Strategy report, DBS Group Research, which is part of the Singapore-based DBS Group, said Indonesia remains its “best pick market for 2015. It said Joko’s plan to target some $450 billion worth of projects within the next five years would help accelerate economic growth in the archipelago.

Investor Daily & GlobeAsia