JAKARTA, April 6 (Xinhua) -- The Indonesian economy will grow at 5.1 percent this year and 5.3 percent in 2018, the Asian Development Bank (ADB) predicts in its annual economic publication of 2017 Asian Development Outlook (ADO).
"On the back of reviving investment and external trade, Indonesia is set to gain further momentum for growth," ADB Country Director for Indonesia Winfried Wicklein told a press conference to launch the report on Thursday.
"A sustained growth path will require continued efforts to improve infrastructure, deepen structural reform, and address skill gaps," he added.
The Southeast Asia's largest economy encountered six-year low growth at 4.79 percent in 2015 and 5.0 percent in 2016.
ADB's projections on Indonesia's growth were lower than the World Bank (WB)'s estimates that stood at 5.3 percent and 5.5 percent for this year and next year respectively on the back of investment and commodity price recovery.
In the ADO document, the bank also estimated that imports would grow but in a slower pace in Indonesia.
As growth improves and international commodity prices recover, average inflation is expected to pick up to 4.3 percent and 4.5 percent in 2017 and 2018 respectively.
Wicklein said that delay in policy reform implementation and fiscal revenue shortfall may hinder Indonesia to remain on growth track.
