While government spending has not been a key driver of growth thus far, monetary policy has remained the key instrument of macro-economic management. Affected by balance-of-payments crises exacerbated by currency volatility, the central bank has maintained a watchful eye on the rupiah, which rose 14.4% against the dollar in 2010 and stands as the...
Which key reform measures will remove administrative hurdles and encourage private investment?
What are the strategic priorities in securing improved economic conditions for the country, and how will these be implemented?
The Netherlands and Indonesia enjoy strong ties that span the realms of culture, politics and the economy. Numerous Dutch companies, ranging from small and medium-sized enterprises to global players, are active in Indonesia. Indeed, many Indonesians have grown up with Dutch brands in industries ranging from consumer goods and manufacturing to...
Strong domestic spending has proved a key advantage for Indonesia, with its 240m consumers helping to insulate it from global economic tailwinds. Private consumption has risen sharply above pre-1997 levels, becoming a key driver of Indonesian economic growth – aggregate domestic consumption now accounts for around 70% of GDP, similar to the...
One of the biggest issues facing Indonesia’s infrastructure push is how it will be financed. The government says that it wants to build and pay for about a third of its public-works priorities, and is currently in the process of attracting investors willing to share the risk, cost and the construction responsibility for the remainder through...
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