Indonesia Economy Growth on Question

07 February 2019

Investors are bit nervous with the average Indonesia economy growth which is stuck between 4.5 - 5 for several years. The question is how this economy growth could be better and what are the problem holding back the growth. In another point of view, investor still see the chance for above 5 percent or 7 percent as government plan.

Analyst see the lack of investment was one of the main problem. While some investor express concern on the regulation and corruption on bureaucracy. As always many time complain that high cost production in factory, whether it is associate with human resource or unregister cost.

Investors have doubt for the regulation that always change every-time the new government formed. They criticizes the lack of consensus how to manage the Indonesia economy. Seem that every new government learn and restart the policy, that's very bad for the investor.

Investors also emphasize the worker minimum wages which grew too fast that the outcome of the production. Just let's see if factory could only grow 10 percent yearly, how could the worker wages can be more than 10 percent. these can be a burden for industry and made investors reluctantly to enter the market.

Indonesia problem seem solved by creating another problem. If the raising cost of living solved by raising worker wages that mean giving industry or investor a burden. How to get profit if everything so expensive and hard to get return the money already invested.

The current condition on economy seem stabilize, which is actually good sign to start the investment. The annual budget get better, which proportion for infrastructure become bigger.
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