Hanoi (VNA) - The Asian Development Bank (ADB) projected that Indonesia's economy will grow by 5.3 percent annually in 2018 and 2019 thanks to improving investment and household consumption. 

ADB Country Director in Indonesia Winfried Wicklein said the government’s management of Indonesian economy remains strong while structural reforms encourage more direct investment, leading to higher and more inclusive growth for Indonesia. 

ADB’s senior economist Priasto Aji expressed hope that investment climate reforms undertaken by the government would boost economic growth. 

In ADB’s projection, public and private investment can grow by above 6 percent in 2018 and 2019, he said. 

Indonesia’s economy is forecast to be higher than the same period last year, backed by increasing government investment and consumption, stable private consumption and positive export performance. 

Increasing investment has been seen mainly in construction in line with the completion of various infrastructure projects to meet the growing external demand. Meanwhile, stable private consumption is backed by stable State purchasing power and increasing spending in connection with the upcoming local elections. 

Furthermore, increasing social assistance and village fund disbursement have buoyed government consumption. 

Amidst the global economic recovery, Indonesia’s economy is projected to grow by 5.1-5.5 percent this year.-VNA