The Challenges In 2017 Not Different: Finance Minister

Jakarta  (Antara Bali) - Finance Minister Bambang Brodjonegoro predicted the challenges to be faced globally in 2017 would not be much different from 2016 - uncertainty besetting both advanced  and developing economies.

"We agree that there would be nothing spectacular globally in 2017. The challenges would more or less the same as this year," Bambang told lawmakers of the Commission XI of the House of Representatives.

The global economic issues would still be dominated by China's  declining economy, uncertainty over the fund rate of U.S. central bank and European turbulence after the Brexit, Bambang said.

"The only improvement we could expect is an increase  in  commodity prices," he said at the working meeting on Thursday .

However, he said he was confident that the country's economy would go through the global pressures  especially as the government would soon have additional source of fund to finance development  with repatriation of funds following the tax amnesty law.

Last month, the House approved and passed a tax amnesty bill into law, which is expected to trigger repatriation into the country of big funds so far  parked abroad  by many rich Indonesian.

On Thursday,  President Joko Widodo said said he was optimistic the tax amnesty policy would be a success  and the target would be reached  as a number of business leaders already gave  positive signals to bring their funds home to Indonesia.

Jokowi said  there were thousands of Indonesians parking their money abroad to evade tax in the country.

Bambang said the tax amnesty policy  would have concrete contribution to increase in investment, one of the country's economic growth drivers other than household consumption.

"We are optimistic about the repatriation as a result of the tax amnesty policy. Repatriation is expected to begin in November -  December. Therefore, the impact  would be greater in 2017 especially in investment," he said.

He said increase in investment would contribute to the country's economic growth which is predicted to be around 5.3 percent - 5.9 percent in 2017.

Earlier, head of the Fiscal Policy Board at the finance ministry Suahasil Nazara said the  country's economy would reach  a turning point toward recovery in 2016 as a result of the expansive fiscal policy since 2015.

Suahasil said the fiscal policy marked with massive deregulation began to show results when the country's economic growth rose from 4.8 percent in 2015 to 4.92 percent in the first quarter of 2016. (WDY)