OECD: Indonesia can meet growth targets but still needs reforms
More on Indonesian growth: the Organization for Economic Cooperation & Development (OECD) has also expressed its confidence that Indonesia can meet its economic goals, but only if certain reforms are met.
GDP growth was third highest in the G20 group of nations, and Indonesia had weathered the global financial crisis well, the OECD said in a report. There is now “a unique opportunity to pursue its reform agenda and achieve lasting, strong and inclusive growth,” and 7-7.7% growth is achievable by 2014, but its full potential would only be met with bureaucracy reforms and strong infrastructure investment, as well as a cut in greenhouse gas emissions. GDP is projected to grow 6% this year.
Specifically, the OECD recommended cutting energy subsidies to free up government revenues for other areas, and said relaxing restrictions on foreign direct investment would see Indonesia meet and surpass its targets.
source & article: Channel NewsAsia
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