Indonesia’s Economy to Be in World’s Top Six in 2030: Standard Chartered

08 December, 2011 | Source: Jakata globe

People migrating from the countryside to cities, a rising middle class and abundant natural resources are three key factors that could make Indonesia one of the world’s 10 largest economies in 2020 and among the top six in 2030, Standard Chartered said in a report last week.

Indonesia’s economic growth since the 1997-98 Asian financial crisis “has often been overshadowed by the rise of China and India,” the British bank said in a special economic report on Indonesia. “However, given its track record in recent years and the large size of its population, we believe Indonesia deserves a prominent place on the radar screen of international corporates and investors.”

The lender pointed out that Indonesia, which has a population of around 240 million, is the biggest economy in Southeast Asia and is a member of the Group of 20 nations.

“We believe its importance will continue to rise in the years ahead,” according to the report, which was written by a group of analysts including Tai Hui, regional head of research in Southeast Asia, and Fauzi Ichsan, senior economist in Jakarta.

The bank expects Indonesia’s current $708 billion economy to rise to $9 trillion by 2030, which would make it the largest economy in size after China, the United States, India, Brazil and Japan. Indonesia’s economy would be bigger than Germany, Mexico, France and Britain, according to the lender.

Standard Chartered forecast that in the next 20 years, Java, which makes up 7 percent of the country’s total land area and is home to the nation’s capital, will be home to fewer people. Last year, it was home to 58 percent of the population.

The bank said that in 2020, the island would be home to 55.8 percent of Indonesians and 53.9 percent in 2030. Improvement in transportation infrastructure and faster economic development in outer islands will draw more people to move to cities outside Java, the bank said.

The total size of Indonesia’s middle class may rise to 171 million in 2020, or 63 percent of the population. In 2030, it may reach 244 million, or 78 percent of people living in the country.

Indonesia, a major producer of coal, tin, copper, gold and agricultural products, could further benefit as prices for commodities are expected to continue rising in the coming years, it said.


 

 

President Joko Widodo (Jokowi) said Indonesia already enters years of low inflation, with inflation around 3 percent in the past two years.
President of the World Bank group, Jim Yong Kim, here on Tuesday expressed his support to the Indonesian governments plan on the tax reform program, which aimed to increase the state budgets income.
President Joko Widodo (Jokowi) plans to visit Turkey to develop partnership in strategic industry and economy with the country, Foreign minister Retno Marsudi said here on Monday at the state palace after a meeting prior to the presidents visit to Turkey and Germany.
Indonesian Foreign Minister Retno Marsudi and her Maldivian counterpart Mohamed Asim will hold a bilateral meeting in Jakarta on Wednesday (June 21) to discuss the cooperation in tourism sector.
The United Nations Food and Agriculture Organization (FAO) has praised Indonesia for its role in fighting illegal, unreported, unregulated (IUU) fishing, the Indonesian Embassy in Rome said.
Indonesias real GDP growth is projected to increase from 5.2 percent this year to 5.3 percent in 2018, according to the World Banks June 2017 Indonesia Economic Quarterly.
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