Indonesia has become the world’s 10th-largest economy, climbing five places in six years, according to the World Bank. But analysts in Indonesia warned against too much rejoicing, pointing out that the country’s economy is driven primarily by consumption by its 250 million people.
David Sumual, chief economist of Bank Central Asia, said Indonesia has the potential to become the world’s fifth-largest economy by 2020. But to achieve that, the government needs to engage in fiscal and bureaucratic reforms and to address pressing matters such as income disparity and a tortuous investment licensing process.
