Indonesia economy to level at 5.1% in 2018

Consumption may recover as other financing sources are explored for its infrastructure projects.

The Indonesian economy is expected to stabilise at 5.1% in 2018 as financing from its massive infrastructure projects are evolving to ease the burden from consumption, according to Citi Research.

Indonesia has ramped up its investment in public infrastructure since 2015 with funds being partially sourced from households in the form of energy subsidy cuts and increased taxes. Correspondingly, savings and consumption growth have been soft for the past years.

As the government moves to address the infrastructure gap, Citi believes that financing for these investments would also evolve as external funds would be used as capital.

Moreover, consumption may gradually pick up as burden to households is projected to ease in the coming months due to the increase in the social welfare budget.

Headline inflation is also projected to decline below 3.5% in the first half of 2018 but is expected to rally in the second half of the year as food inflation normalises.

Upcoming political events including the finalisation of the presidential and vice-presidential candidates for the 2019 elections are also being closely monitored as it will have an impact on business conditions and policy continuity. 

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

One in 900 job vacancies requires new hires to be vaccinated.
DairyFarm showed the most growth.
ARA LOGOS is currently on the 13th spot.
Meanwhile, the demand for petrochemical exports benefitted from this same crisis.
This is expected to speed up the electronic exchange of trade documents.
This is in support of achieving Absolute Zero Carbon by 2040.
Adults will only shop if goods are discounted by at least 48%, survey says.   About 54% of 1,001 Singaporean adults have plans to shop during the Black Friday sales but only if prices of goods are discounted by at least 48%, a survey from Finder.com showed.
This move is in line with its goal to accelerate recommerce growth in SEA.
The notes were released under its $3m Multicurrency Medium Term Note Programme.
Singtel showed the most growth.
Re-exports also saw an increase of 16.4% in the same month.
The marine company apologised to its workers at the dorm.
SG electricity demand peaked at 7,667MW in October 2021.
The two aim to accelerate the progression of AI.
It will focus on sustainable opportunities for companies in Singapore.