Despite continuing external pressures, Indonesia's economy is expected to grow by 5.3 per cent next year, primarily on the back of stronger domestic consumption and investment inflows, President Joko Widodo told Parliament yesterday.

But Mr Joko, who won re-election in the April 17 polls, also highlighted the tougher challenges for the economy ahead amid uncertainties on the global front, including the United States-China trade war and currency depreciation.