Indonesian government launches a plan to boost its economic growth to 8-9% from 2015 to 2025 and cut its annual inflation to 3% by 2025. Last year, country has enjoyed expansion of 6.1% subject to investments in six designated growth centers in four provinces.
Mr. Yudhoyono said that there is a need of breakthrough along with strong economic growth to reduce poverty and unemployment rates.
Indonesia from decades have been relying on household consumption and last year government has initiated to launch the growth centers to increase the contribution of investment to economic growth as it is expected that local and foreign companies will invest up to US$465 billion (S$575.6 billion) in various projects through 2025.
To boost the economic growth above 7% it is necessary for the government to encourage investors to acquire land for investments projects and that can be done by reducing the regional government levies and taxes, among other changes, suggested by economists.
According to the World Bank Indonesia, along with Brazil, China, India, South Korea and Russia, will account for more than half of global growth by 2025.
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