Indonesia is looking to step up its economic drive as the country's planning industry came up with a proposal that targets an average of six percent in GDP growth within the next five years.
According to Channel News Asia, Indonesia's planning ministry unveiled a proposal that would help the country haul in more investments during the second term of President Joko Widodo in power.
The proposal, which was released to the public on Wednesday, stated that there could be three scenarios for growth in Indonesia. Among the most notable plans is to attract total direct investments ranging between $2.62 trillion to $2.68 trillion under Widodo's second term.
The proposal, which is expected to be approved by Widodo sometime before his official reign in office kicks off on October 20, also outlined several projects including the completion of the high-speed track from Jakarta to Bandung.
The said project was developed under China's Belt and Road Initiative (BRI) and has a budget of $6 million. Another notable project in the proposal is a high-speed railway track that connects Jakarta to Semarang, a city in Central Java.
Indonesia's economy suffered from falling prices in key commodities. Higher interest rates also kept the economy from expanding to Widodo's ambitious target of seven percent in GDP growth during his first term as president.
Economists have mixed hopes for the Indonesian economy, considering that Widodo was unable to reach his GDP growth targets. It remains to be seen if the six percent target for his second term will be attained through increased investments.
Meanwhile, the Indonesian parliament approved Destry Damayanti as the Senior Deputy Governor at Bank Indonesia, in a bid to integrate the reforms that are necessary to bolster the country's finance sector.
Damayanti is the first lady governor to hold the said position after 10 years of being held by a man. The announcement came as economists are expecting Indonesia to see a potential surge in foreign inflows.
In an interview two days before the approval of the new Bank of Indonesia position, Damayanti noted that lower interest rates in the global stage could help "push money to emerging markets." She said that under these circumstances, Indonesian authorities will have the opportunity to address issues in the country's economy.
The new BI senior deputy governor urged the banking sector and the Indonesian government to step up its game on measures that will attract foreign direct investments under longer-term deals.
It appears that Widodo is all for foreign investments as a way of helping drive economic growth. According to Bloomberg, the president has been securing deals with a number of firms including Toyota Motor Corp. and Inpex Corp.
Widodo is also expected to sign deals with Saudi Arabia's Crown Prince Mohammed bin Salman as he is scheduled for an Indonesian state visit sometime in August.
