Economy

The Indonesian rupiah slumped for most of 2018, but with the currency enjoying a comeback against key global currencies such as the US dollar in early 2019, the authorities appear to have warded off a major threat to growth. The policy decisions of 2018, including monetary policy and import replacement, affirmed a sense of long-term economic...

The economy expanded by 5.2% in 2018, according to official figures from Statistics Indonesia, slightly above the previous year’s growth rate of 5.1%. This was driven by gains in major industries: construction grew by 6.3%, vehicle and retail trade by 5.1%, processing by 4.2% and agriculture by 3.9%. Strong performances were also seen in...

Foreign direct investment (FDI) inflows into Indonesia reversed a five-year trend in 2018 when they contracted for the first time in five years, with total estimated FDI inflows estimated to be down nearly 9% year-on-year. The country is facing several challenges as it seeks to boost investment – outward investment from China has been slowing...

Indonesia has made significant progress in expanding trade relationships with two major trade partners under the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) and the Indonesia-European Free Trade Association Comprehensive Economic Partnership (IE-CEPA), with both deals set to reduce trade barriers and provide new...

Despite the rupiah sinking to its lowest level in over two decades, consumer spending in Indonesia expanded. Retail sales grew by 3.7% in 2018 from 2.9% in 2017. Household consumption rose 5.5% in 2018, up from 4.9% the year before. Clothing sales were particularly robust, jumping 15.1% compared to 1% in 2017. Automotive sales also increased...