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Indonesia Economic Outlook, Q4 2009

By Arpitha Bykere, HyunGyu Kim

Executive Summary

  • 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…

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