Indonesian Government Projects 6.4% to 6.9% Economic Growth in 2014
In the draft for the State Budget of 2014 (RAPBN 2014), the government of Indonesia projects economic growth of between 6.4 and 6.9 percent. Continued global recovery is expected to result in higher GDP growth compared to 2012 (6.23 percent) as it will result in better demand for Indonesian products, such as commodities. The main pillar of Indonesia's GDP growth - domestic consumption - is expected to grow due to the population's higher purchasing power and the upcoming legislative and presidential elections.
Indonesia's projected economic growth is higher than the result of 2012 when it posted an annual growth of 6.23 percent. However, it is lower than the target that was formulated in the country's National Medium Term Development Plan (RPJMN, 2010-2014).
In 2014, Indonesian exports are expected to rise by 6.9-7.1 percent, and household consumption is expected to rise by 5.2-5.6 percent. Foreign investment is also assumed to remain strong, although political elections in 2014 can make some investors cautious.
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