Archive for September, 2015

Boosting Indonesia’s Economy

September 9th, 2015

hong kongActions by officials in Indonesia are being put in place to help ensure a “massive deregulation” in the country in the hopes of attracting investments. Due to a deceleration in domestic consumption, the economy has been waning. China’s super cheap prices hasn’t helped the country much either.

Some of the actions include: a reshuffle of the governmental economic group, new stimulus package, infrastructure projects (most notably the coal-fired power plant). Regulations are being reviewed to ensure that those which can be eliminated, will.

To get back on the successful bandwagon, Indonesia requires 3,518 trillion rupiah (HK$1.9 trillion) of investment to achieve its economic growth target of 7 percent. This can come from both local and FDIs. If this isn’t achieved, growth will not exceed more than 5 percent, the lowest it has been in the country since 2009.

In more positive news however, Indonesia is the battleground between China and Japan as to which country will get the rights to build its first high speed railway. That will definitely help its economic environment. The competitive spirit is good for everyone. Especially since Indonesia is long overdue for a multi-million dollar overhaul of its antiquated infrastructure.