Oct 7, 2009
| Last Updated
- Despite fragile exports and investment, growth will be sustained by fiscal stimulus, private consumption, and improved investor confidence boosted by political stability;
- Inflation risks will invite monetary tightening but attractive yields will finance the loose fiscal policy;
- Any slowdown in risk appetite among foreign investors poses risk to the asset market rally, short-term external debt payments and low foreign exchange reserves.
Low dependence on exports and relatively strong consumption have helped Indonesia maintain modest economic growth despite the global[...]
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