Surabaya city, Indonesia. (Source: digitalnewsasia.com)

Jakarta (VNA) – The World Bank (WB) forecast Indonesia’s economy will grow at 5.3 percent in 2017, the Antara news agency reported, citing the bank’s economic report on Indonesia released on January 18,

WB Country Director to Indonesia Rodrigo Chaves said Indonesia’s budget has shown improvement in government spending and capital allocation has been directed to development in infrastructure, health and social welfare.

Chaves believed that the government’s budget has been allocated to better carry out energy and social subsidy goals for the poor and stressed Indonesia needs to maintain reform motivation to achieve the effective development goal.

The report said Indonesia will achieve a higher growth in 2017 due to the increase of private investment thanks to monetary policy in 2016 and the success in creating a better investment environment.

Individual spending is also predicted to increase in 2017 due to low inflation and the stability of the domestic currency. However, the report said Indonesia should accelerate reforms of administrative procedures and tax policy to increase tax collection.-VNA