Stanchart: Indonesian Economy in the 2011 is Competitive

Economists estimate the Indonesian economy is now the largest in the world number 16 will appear as the world's leading economies next year.

So that was disclosed a number of Standard Chartered Bank economist in the official statement that was sent to us in Jakarta on Wednesday night, September 29, 2010. This statement he also convey to the client and a number of foreign investors who were visiting Indonesia.

Fauzi Ichsan, senior economist at Standard Chartered Bank estimates that Indonesia's GDP growth rate will reach 6.2 percent by the end of this year, 6.5 percent in 2011 and 7 percent in 2012.

"This growth was driven by strong domestic consumption, low global interest rates and high commodity prices," he said.

However, he stressed the need to accelerate the development of infrastructure to encourage investment in the real economy and GDP growth above 7 percent. "Bank Indonesia must also be ready to raise interest rates to control inflation which has been predicted."

Fauzi and some other economists predict appreciation of the rupiah will continue to increase throughout the remainder of this year until next year. Accordingly, foreign exchange reserves will also continue to increase to support such appreciation.

However, Fauzi warned the biggest risk to the Indonesian opportunity to excel in the global economy is a small possibility of multiple global economic crisis and the risk of capital flight.

Head of Research for Standard Chartered Bank's Southeast Asia, Tai Hui, said: "Asian Security in the face of global economic decline in temperature gives us confidence that Asia will remain resilient to face the possibility of turbulence in the future."

According to him, Asian currencies will continue to appreciate due to capital inflows, security and performance benefits of the global economy.

Within a few months ahead of the world economy such as China, India and Indonesia will perform better. This can happen because the export is expected to slow in the remainder of 2010 and during the first half of 2011, which is caused by the weakening of the United States and Europe.

In the next 12 months, the United States could experience an economic recovery though very slowly, because it is still weak domestic consumption. "Economic growth in China will be mediocre, but it will help long-term sustainable growth in major economies," said Hui. Indonesia Today

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