While still high by world standards, Indonesia’s annual GDP growth rate has been declining since 2011, when it peaked at 6.5%. Overall trade volumes have declined since 2012, oil production is at a forty-year low, and mineral exports are down. However, Indonesia recorded a trade surplus in the first quarter of 2015, a significant growth in the trade balance compared with the previous year.
The government has lowered its 2015 growth forecast from 5.7% to 5.2-5.4%. Based on the GDP growth rate in the first half of 2015, most analysts believe Indonesia will be fortunate to match last year’s 5% growth rate.
What challenges must Indonesia’s resolve to boost its growth rate? What are the prospects for Indonesia’s addressing these challenges, and achieving an upturn in GDP growth?
On June 25, USINDO hosted a Special Open Forum with James Castle, Founder of Castle Asia and USINDO Advisor, discussing Indonesia’s economic performance and outlook.