World Bank predicts slower growth for Indonesia

The Jakarta Post, Jakarta | Tue, 10/04/2011

The World Bank predicts slower growth in Indonesia next year, saying the archipelago is not as immune to the US and European debt crises as it fancies itself to be.

“The World Bank’s baseline projections for [Indonesia’s] growth this year is 6.4 percent and in 2012 6.3 percent,” World Bank economist Shubham Chadhuri said Tuesday in Jakarta.

The bank had earlier predicted 6.7 percent growth for Indonesia next year.

Nevertheless, Chadhuri said Indonesia had relatively strong economic fundamentals, making it less vulnerable to the shakes in the global economy.

“Presently, it is more important for Indonesia to avoid policy uncertainties and to take measures to enhance its resilience against the jolts in the global financial market,” he added, as quoted by Antara.

In a more pessimistic scenario, Chadhuri said Indonesia’s economy might even grow at lower rate, namely 5.5 percent