The countrys economy is predicted to expand in 2016, a senior official of the OJK Firdaus Djaelani said here on Thursday.
Many observers are optimistic that the countrys economy would grow stronger in 2016 as a result of the series of economic policy package marked with deregulation launched by the government recently.
"Economic growth in 2016 would be driven by larger investment by the government and the private sector , Firdaus said.
The optimism about economic revival in 2016 is reflected in the targets set in the state budget approved by the government , Bank Indonesia, and the Parliament.
Among the assumptions used to calculate the 2016 state budget include economic growth targets set at 5.3 percent, inflation at 4.7 percent and the rupiah value at 13,900 per U.S. dollar.
Firdaus said Indonesian people still have little interest in insurance. By the end of September, only 2.51 percent of the population held insurance policy.
He said the low penetration of insurance should be seen as an opportunity to expand insurance market especially for financial service industry.
"We are the most populous country in Asean. Strong growth of the middle class should require beyond banking service especially insurance products to protect their assets," he said.
In addition, Indonesia has large number of small and medium enterprises and their number has continued to grow that they would need insurance protection, he said.(*)
Editor: Heru Purwanto
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