the rising of indonesia's private sector investment in 2017

Rising private sector investment and strengthening commodity prices are the correct ingredients that can trigger accelerated economic growth in several Southeast Asian nations in 2017. In a report entitled "Global Economic Prospects: Weak Investment in Uncertain Times", which was released on Tuesday (10/01), the World Bank set its forecast for Indonesia's economic growth at 5.3 percent year-on-year (y/y) in 2017, followed by a 5.5 percent (y/y) growth rate in both 2018 and 2019, up from an estimated growth rate of 5.1 percent (y/y) in 2016

Direct investment, both foreign and domestic, is expected to strengthen in Indonesia in 2017, encouraged by the country's accelerating economic growth (implying people's improving purchasing power), while the central bank of Indonesia (Bank Indonesia) has been able drastically cut its interest rate environment over the past year due to low inflation, a relatively stable rupiah exchange rate and an under-control current account deficit. In fact, private investment could be the second-largest engine of overall economic growth of Indonesia in 2017, after household consumption (which accounts for about 55 percent of Indonesia's GDP).

However, the Indonesian government should continue to improve the quality of the investment climate, especially now investors are concerned about rising political, ethnic and religious tensions in Southeast Asia's largest economy.