REPUBLIKA.CO.ID, JAKARTA -- China's economic slowdown has had an impact on Indonesia's economic growth, particularly from the export sector, according to the World Bank.

China is the biggest importer of crude palm oil and coal from Indonesia, Jim Brumby, the World Bank's sector manager and lead economist for the Indonesia country economics program, said in a report on East Asia Pacific (EAP) Economic Outlook released on Monday.

China's economic slowdown will automatically prompt the country to reduce its imports, including crude palm oil and coal, he said.

"Thus, demand for crude palm oil and coal will decline due to the effect of the trade balance," he said.

Besides Indonesia, China's economic slowdown also had a direct impact on Mongolia, he said.

Both Indonesia and Mongolia were among the biggest suppliers of export commodities to China, he noted.

"Of course, all countries which export commodities to China will be affected by the Chinese economic condition," he said.

The World Bank has predicted the Chinese economy will continue to slow down in a relatively long time, citing consumption growth which is far higher than investment growth.

China's economy is expected to drop to up to a threshold of 7.6 percent in 2014 and 7.5 percent in 2015 from 7.7 percent in 2012 and 2013.

Ikuti Whatsapp Channel Republika