With economic growth slowing, inflation rising and the currency weakening, Indonesia has some tough macroeconomic challenges ahead. However, the government has responded to the situation with a variety of monetary and fiscal policy tools, including raising interest rates while at the same time rolling out fiscal stimulus measures.
While foreign direct investment (FDI) has sustained 22% average annual growth over the past six years, according to statistics from HSBC, the composition of investment has broadened beyond the traditionally dominant extractive industries. As part of a regional rebalancing of FDI, the focus of investment into Indonesia is shifting from purely...
What are some of the biggest challenges that need to be overcome for the economy to move forward?
Growing prosperity, improved wealth distribution and a burgeoning middle class are set to fuel a rapid rise in private consumption within the ASEAN bloc countries in the coming years, a trend that will be given further impetus by the greater regional integration that will follow the launch of the ASEAN Economic Community (AEC) in 2015. According...
Pressures on Indonesia’s current account came to a head in May 2013 as portfolio investments reversed their flow and began leaving the country. Authorities have reacted to curb further growth in the deficit. With Bank Indonesia (BI) responsible for monetary tightening, the government has followed with a series of measures to balance the trade...
How is ABAC prioritising the deepening of economic integration in the Asia-Pacific region?
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