Indonesia's growth this year is estimated at 5.7 percent, an Asian Development Bank (ADB) senior official said here on Tuesday.
"Indonesia's growth is to soften slightly to 5.7 percent this year before picking up to 6.0 percent next year," ADB country director Indonesia Adrian Ruthenberg said at a press conference, divulging the ADB's annual economic publication "Asian Development Outlook 2014".
Indonesia recorded a 5.7 percent growth last year, compared with an average of 5.9 percent in the previous five years.
He added that the projection was based on assumptions that the upcoming elections go smoothly without any disturbance and further steps carried out by the new government in improving investment climate.
Adrian said that private consumption is expected to remain strong throughout the forecast period, assisted by the easing inflation and election-related spending in the first half this year.
"Overall, the conduction of elections may insignificantly spur growth by 20 basis points due to increasing consumption from production of elections necessities," he told Xinhua on the sidelines of the press conference.
He added that investment would likely increase next year after the new government clarifies its investment policies and, likely, improves the infrastructure.
"Investment prospect will improve on considerably lower inflation and current account deficit projected for 2016, as well as on strengthening world trade," he said.
However, a senior ADB official said that the current account deficit will remain a challenge for Indonesia this year and beyond.
The country's measures to address this issue, including reducing imports, boosting export and depreciating the local currency Rupiah, would only ease the economy in a short term, he said, adding that to gain impacts for a longer term, it requires structural reforms to achieve sustained gains in productivity and competitiveness.
Indonesia's current account deficit was estimated to ease to minus 2.0 percent next year from minus 2.9 percent this year.