Weakest growth in 5 years makes Joko's job harder

Jakarta

INDONESIA's gross domestic product grew 5.01 per cent in the third quarter from a year earlier, its slowest in five years, highlighting the challenge that new President Joko Widodo, popularly known as Jokowi, faces trying to turn around Southeast Asia's largest economy.

Mr Joko, who took office on Oct 20, has set himself a target of lifting annual growth to 7 per cent - the minimum economists say is necessary for the country to reach a decent standard of living before its population starts to age in 15 years' time. "It's hard to see how he gets there. Exports are not going to pick up much, and if he's going to get there, it's mostly going to have to be through investment," said Dan Martin at Capital Economics.