Indonesia is set to experience healthy growth in 2017.
Research conducted by Bank UOB Indonesia predicts that economic growth in 2017 will be at 5.2 percent. A direct result of the 14 economic policies released by the government since September 2015 aimed at propelling the domestic economy whilst creating an attractive investment climate for outwards investors to make moves in Indonesia.
The policies encompassed a variety of strategies. This included procedures to ensure ease of investment, abolishing double taxes for real estate, the e-commece industry and investment trusts, plus introduce a minimum wage growth. All of which have had a positive influence according to UOB.
The banks annual survey, UOB Asian Enterprise Survey, revealed that 25 percent of companies surveyed in Asia intend to expand within Indonesia over the next five years. However traction has already been recorded as the Foreign Direct Advisory Unit of Bank UOB Indonesia have aided 70 companies to open branches in the country since 2013.
Indonesia’s top trading partners are China, Japan, Singapore, the European Union and America. Questions have been raised as to whether Indonesia’s relationship with the US will falter with news of Donald Trump becoming the next president. However, many countries are taking the sit back and wait approach to see how the future pans out once Trump takes in seat in office.
Nevertheless capital inflow for 2017 are anticipated to reduce thanks to the US Federal Reserve tightening its belt. But South East Asia still retains its appeal as a place to invest due to its highest growth potential if compared to the rest of the world. So whilst there maybe less collaboration with America in the future, other countries are expected to continue to be active players in Indonesia’s economic growth.
