Economy

Long considered South-east Asia’s economic powerhouse, Indonesia has seen growth decelerate in recent years as commodities prices fall and demand in China weakens, while currency depreciation in light of US monetary easing has affected its manufacturing and industrial sectors, as well as small and medium-sized enterprises. Falling global oil prices led to a removal of oil subsidies, which freed up new fiscal space in 2015. However, a concurrent decline in prices for commodities such as palm oil and minerals brought growth to a six-year low that year, with forecasts for 2016 remaining subdued in the wake of ongoing global uncertainty.

This chapter contains an interview with Sri Mulyani Indrawati, Former Managing Director, World Bank.