"Indonesian Economy May Be Overheating"

VIVAnews – An economist at PT Bank Mandiri Tbk., Destry Damayanti, warned the government about the possibility of overheating following the economic growth that may happen within the next 2 years. 

The overheating may arise if the issues on land provision and infrastructure are not solved immediately.  

“We don’t want to be like India where the growth rate is as high as the inflation rate because of the delay in infrastructure development,” Destry said in Jakarta, today, Jan 17.

She estimated that Indonesia’s latest condition with 6% of economic growth is still capable to supply the requirements. This can be seen from the national production capacity, which has reached 70 – 80 percent.

“The demand is still rising. But the capacity might only survive for 2 years, then overheating will happen,” she said. 

Destry said that if the land and infrastructure issues are not cleared up by the government in time, then our economy may end up like India’s. 

With our current condition, she continued, Indonesia is expected to record a maximum of 6 to 6.5 percent of economic growth.  

“A 7 percent rise will be difficult without any acceleration in infrastructure, technology, including logistics,” she added.