Chief economist of state lender Bank Mandiri Andry Asmoro has estimated the national economy to grow by 5.14 percent in 2020, spurred by consumption and investment. “We expect the Indonesian economy to grow by 5.14 percent in 2020 supported by maintained household consumption growth and improved gross fixed capital formation (PMTB) growth,” he said at a media gathering on the economic and market outlook 2020 in Jakarta. Asmoro said that the growth was the result of the formulation of policy packages in connection with boosting the competitiveness and domestic investment climate, such as the Omnibus Law. He also projected that the national inflation rate will reach 3.54 percent by 2020 owing to adjustments to several government-regulated prices.
Asmoro has projected the national economy to grow five percent in 2019, spurred by several seasonal factors in the fourth quarter of 2019. The seasonal factors comprise strong household consumption along with Christmas and New Year’s Eve celebrations and a spike in government spending at the end of quarters every year. Until the third quarter of 2019, the Indonesian economy was yet to grow at about five percent despite a global economic slowdown resulting from global uncertainty over the US-China trade war and geopolitical upheavals in several parts of the world, including Brexit, Hong Kong, the Korean Peninsula, and the Middle East. The Indonesian economy grew 5.02 percent year-on-year (yoy) in the third quarter of 2019, decreasing from 5.17 percent than the corresponding period last year.