Slower growth in Indonesia may provide an impetus to realise a range of reforms that the government is planning, changes that could open several important and attractive sectors to greater foreign investment.
Indonesia Economy
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Although external commodity price shocks and the declining value of the rupiah are the macro-economic trends dominating headlines about the Indonesian economy, some foreign investors still view labour policy and rising wages as greater challenges.
Economic update | Indonesia needs a creativity boost
21 Oct 2013
As concerns grow that an over-reliance on resource-related exports could see Indonesia repeat the boom-bust mistakes of its past, the country is being encouraged to accelerate moves to diversify its economy away from commodities and towards areas such as the creative industries.
With economic growth slowing, inflation rising and the currency weakening, Indonesia faces some tough macroeconomic challenges. However, the government has responded to the situation with variety of monetary and fiscal policy tools, including raising interest rates while at the same time rolling out fiscal stimulus measures.
Economic update | Indonesia: An eye on inflation
16 Apr 2013
Inflation in Indonesia picked up in the early months of 2013, as rising prices have constrained the Bank of Indonesia’s (BI’s) ability to loosen monetary policy to encourage GDP growth, with possible further rate rises to come. However, the robust economy is unlikely to suffer much as a result, particularly if other pro-growth measures are taken.
Articles & Analysis | Ready for business: Positive economic prospects make for attractive opportunities from The Report: Indonesia 2013
A popular and official local provincial motto reads “success and prosperity only come with effort”, and it is clear that these days, East Java is taking this wisdom seriously. The push to amplify economic growth is seeing major efforts under way to attract more investment and develop the region’s economy.