JAKARTA: The Indonesian branch of US-based Citibank has offered a more optimistic view of Indonesia’s economic growth target next year on the back of stronger consumer purchasing power and higher commodity prices.
Citibank Indonesia head economist Helmi Arman said Wednesday that the bank forecast the country’s gross domestic product (GDP) to grow by 5.3 percent in 2017, higher than the government’s and the Asian Development Bank’s (ADB) projection of 5.1 percent.
“We are optimistic that GDP growth will expand by 5.3 percent from the predicted growth of 5 percent this year,” he said.
The bank predicts that commodity prices will pick up in 2017, leading to an increase in people’s purchasing power in commodity-producing regions, especially in Sumatra and Kalimantan.
“Next year, Citibank forecasts that the oil price will increase to around US$50-55 per barrel,” he added.
Despite the bright economic outlook, Helmi warned that Donald Trump’s recent victory in the United States presidential election would trigger short-term volatility in the market.
