IMF chief urges Indonesia to boost growth to create more jobs

IMF Managing Director Christine Lagarde (R) meets with Indonesian President Joko Widodo on February 26 - Photo: Xinhua/VNA

She made the suggestion when meeting with Indonesian President Joko Widodo on February 26 at the start of her week-long visit to Indonesia.

In a statement released following the meeting, Lagarde said Indonesia’s economy continues to prove resilient with a sound economic performance and favourable outlook. She hailed the Indonesian President and his team on their successful economic management and strengthened policy frameworks.

In recent years, Indonesia has struggled to bring its economic growth above 5 percent, well below China and India, amidst weakening consumer demand and limited foreign investment.

Last year, the second largest economy in Southeast Asia failed to meet the government’s GDP growth target of 5.2 percent. Indonesia is expected to expand its economy by 5.3 percent in 2018

The IMF chief said the two sides talked about the importance of achieving higher growth to increase employment for Indonesia’s growing workforce.

During the visit, Lagard will attend an economic conference alongside banking executives and officials from ASEAN countries, which will focus on new growth models and adaptation to rapidly changing technologies.

She also plans to visit Yogyakarta City in Java and Bali Island, where the IMF will hold its annual meetings in October.