Indonesia's growth may reach 5.2 pct next year: analyst

Indonesia is estimated to see improving growth next year of up to 5.2 percent on the back of significant improvements in macro-economic parameters and government's spending, an economist said here on Tuesday.

Gundy Tjahjadi, an economist at the DBS Indonesia Bank said that to attain higher growth, government should provide short-term stimulus programs to support economy package programs launched by the president recently.

"The economy package programs issued by the government was good for the long term. But if the government wants to attain higher growth, it must provide the stimulus for the short terms," Gundy said in DBS Asian Insight Conference event held here.

He added that the growth in the upcoming year would be highly contributed by the increasing investments, recovered exchange value of national currency rupiah against the U.S. dollars and more spending of government's budget to finance the development programs.

Indonesian President Joko Widodo has launched several economic reform programs in various packages, aimed at facilitating investors intending to invest in Indonesia and to spur the development of infrastructure projects across the nation.

The government has previously revised down its growth target for next year to 5.3 percent from 5.5 percent in its 2016 state budget draft.

Indonesian central bank (BI) estimated that the nation's growth would reach between 4.7 to 5.1 percent this year, spurred by massive spending of government's budget in the last quarter of the year. Enditem