RI economy to expand to 5.6 % in 2010, EIU says

Aditya Suharmoko, The Jakarta Post, Jakarta | Wed, 03/24/2010 12:56 PM

The Economist Intelligence Unit (EIU) forecasts Indonesia's economy to expand 5.6 percent this year and 5.9 percent in 2011, as the country continues to attract global investment interest.

Indonesia remains a key emerging market opportunity, harnessing a maturing democracy, a resilient domestic market and an attractive natural-resource-based story, Ross O'Brien, Economist Corporate Network's director, told a press briefing Wednesday.

"Yet while Indonesia is hitting its stride, there are many aspects to its development that need committed reform and restructuring if the country to meet 'stretch' goals – that is, to exceed the consensus view that Indonesia should be growing at 7 percent or more per year. These include bolstering institutions and legal environments to promote and encourage investment in public infrastructure," he said ahead of a high-profile conference Thursday.

Economist Conferences is set to host the Indonesia Summit on Thursday, which brings in more than 100 senior business leaders and government officials for an interactive discussion.

Vice President Boediono, Finance Minister Sri Mulyani Indrawati, Trade Minister Mari Elka Pangestu, Industry Minister MS Hidayat and Investment Coordinating Board head Gita Wirjawan are among the senior officials who will attend the conference.