Challenges for Indonesia's Economy to Persist in 2016
With the year 2015 coming to an end, it is worthwhile to take a look at the challenges that Indonesia faced this year and whether these challenges will remain in 2016. In short, we believe that the current external challenges persist into the new year. Although the country's economic growth is projected to accelerate to 5.3 percent year-on-year (y/y) in 2016 from an estimated 4.7 percent (y/y) in 2015 (the fifth consecutive year of slowing gross domestic growth expansion), this growth is primarily caused by improved government spending.