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With investment in industrial zones, SEZs, infrastructure, and priority industries set to increase in the coming years, Indonesia remains extremely well positioned to capitalise on its place as a regional leader.
Although Indonesia faces a challenging external environment, including the threat of US protectionist trade policies and concerns over contracting exports to China, its strong macroeconomic fundamentals should keep GDP growth steady, with this forecast to continue accelerating in 2017. With commodities prices rising in 2017 – and with domestic demand supported by credit growth, steady FDI inflows and improved exports – Indonesia remains well positioned to progress towards becoming one of the world’s top economies.
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