Bloomberg News

Indonesia’s Economic Growth More Balanced, IMF’s Zavadjil Says

December 06, 2011

Dec. 6 (Bloomberg) -- Milan Zavadjil, the International Monetary Fund’s senior resident representative in Indonesia, comments on growth, investment and commodity prices at a forum in Jakarta today.

On economic growth:

”We expect the economy may grow 6.3 percent next year, the same as the central bank forecast. Investment is picking up strongly. Growth is not only strong, but it is getting more balanced. Not just consumption, but investment.”

On foreign investment and exports:

”It depends on global conditions. I can’t see foreign investment slowing down, unless there is a very bad situation in the world economy. The good news is commodities - even as global economic risks increase, commodity prices are staying quite strong, especially coal and palm oil. But if you have a very bad slowdown, then clearly Indonesia’s exports are going to be affected.”

On Indonesia’s main challenge in 2012:

”Indonesia has a great need for infrastructure. It needs to accelerate spending to support growth. Otherwise you could have bottlenecks. I think the lack of spending on infrastructure is a risk for growth. Indonesia needs to focus on roads and ports to improve connectivity. The government has a good master plan, but implementation of the master plan is what’s needed.”

--With assistance from Novrida Manurung in Jakarta. Editor: Andrew Janes

To contact the reporter on this story: Hidayat Setiaji in Jakarta at hsetiaji@bloomberg.net

To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net


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