2020-01-22 04:43:561970-01-01 00:00:00
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The Road to a $7 Trillion Economy

As he entered his second term in October 2019, Indonesian President Joko...

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The Road to a $7 Trillion Economy      As he entered his second term in October 2019, Indonesian President Joko Widodo has big plans for the largest economy in Southeast Asia comprising more than 300 ethnic groups. The leader of the world’s fourth most populated country outlined an ambitious footprint in hopes of creating a $7 trillion economy by 2045. The Indonesian economy is growing at its slowest pace since 2016, with GDP (Gross Domestic Product) aimed to grow by a mere 4.9% and 4.7% in 2019 and 2020 respectively. Like other economies in the region, the bleak outlook is mainly attributed to decreased commodity prices which have since taken a toll on the economy.  Despite the slower growth, Moody Investor Services saw no need for any changes in Indonesia’s credit rating. More notably, Moody upgraded the country’s rating to that of Baa2 back in 2018 due to the credible framework put in place to support macroeconomic conditions. August 2019 saw the President proposing to shift the present capital of Jakarta to a less dense city of Kalimantan. The rationale behind the reason of such a shift came about as Jakarta is currently battling the issue of rising sea levels, with the city possibly being submerged by 2050. The past ten years saw the capital city constantly battling w

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