According to World Bank reports and predictions, Indonesia's economic growth is set to increase during the remainder of this year.
The World Bank predicts Indonesia's growth rate could touch 7% in the medium term if recently announced government measures to improve infrastructure and the investment climate and tackle corruption are effectively implemented. Growth has picked up thanks in part to lower interest rates and a drop in global oil prices.
However it warned that Jakarta should do more to tackle the growing threat of bird flu and ongoing corruption. This alone is the current and relevant threat to continued economic growth. Indonesia is the world's fourth most populous country and has so far lost 37 people to the deadly H5N1 strain of the virus.
Interestingly, the World Bank was concerned about Indonesia's estimated $800m funding shortfall to prevent a pandemic of the H5N1 virus. An economist with the World Bank, William Wallace, said there should be better planning and better financing and that the issue is threatening Indonesia's image among investors and tourists.
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