Indonesian Economy Grew by 5.1% in 2017

Updated on Friday 16th February 2018

For a few years now, Indonesia is considered the largest economy in Southeast Asia, a fact which is confirmed by the latest economic studies indicating the country’s performance. The last two years brought an increase of more than 5% to Indonesia’s Gross Domestic Product (GDP), with 2017 being one of the best years in the last decade. If you want to open a company in Indonesia, our local consultants can guide you through the company registration process.

The last quarter was the best of the economy in 2017

The Central Bank of Indonesia released its first report on the country’s economic situation at the beginning of the year when it also presented the interest rates for this year. According to this report, the economy expanded by 5.1% last year, 0.1% higher than in 2016.

The best performing quarter was the last one, when the GDP grew by 5.2%, surpassing the market expectations and the analysts reports which had indicated a 5.1% increase.
Private consumption and investment growth compensated for the slight decrease in export numbers in the last months of 2017.

The Central Bank also issued a warning that the economy is still fickle, and cautiousness should be adopted by the government and Indonesian companies.

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Credit agencies are positive about the Indonesian economy

The economic increase determined credit rating agency Fitch to rise Indonesia’s sovereign rating. Standard and Poor’s also upgraded Indonesia’s credit rating for 2018.
Based on these ratings, economists predict an economic growth of 5% for both 2018 and 2019, as the government has promised new fiscal policies which would help boost the economy.

Among the industries to help the economy this year, manufacturing and tourism remain among the best. However, export numbers are also expected to have a slight increase in 2018.

Foreign investors who want to open companies in Indonesia can open fully foreign-owned limited liability companies in various regions in the country. For assistance with the company registration process, please feel free to contact our company registration advisors.