Economists: Three Business Sectors to Grow Strong in 2016
Economists at Bank Mandiri projected that three sectors will grow strong in 2016. They are consumer goods industry, manufacturing sector and infrastructure.
×Powered By CapricornusNadia Kusuma Dewi, one of the economists, projected Indonesia’s economic growth of five percent in 2016 after the Fed ended uncertainty over its rate increase and the issuance of the government’s recent policy packages. “Domestic-oriented sector has huge potential to grow stronger,” said Nadia in her research report.
Mamay Sukaesih, another economist, said in the same report that the country’s huge population especially its growing middle-class, working-age group will become a major growth driver of the consumer goods sector in addition to the change in lifestyle and consumption patterns as well as increased urbanization.
Moreover, the government’s policy to prioritize infrastructure development, particularly railway, road, port and airport both inside and outside Java will give a boost to this sector. A number of infrastructure projects that will be prioritized this year include Sorong-Manokwari railway, Domine Eduard Osok Airport in West Papua, Bitung Port in North Sulawesi, Manado-Bitung road, Samarinda-Balikpapan road, Kuala Tanjung port in North Sumatra and Soekarno Hatta-Halim Perdana Kusuma airport railway. “Infrastructure will become a major growth driver of the local economy,” said Mamay.
The last sector that is projected to grow strong this year is manufacturing sector especially industries and products that are able to create added value and based on local natural resources. For example, cocoa in West Sulawesi and seaweed in Central Sulawesi.