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Briefing

Indonesia: Economic Profile

Critical Issues

Background:

Indonesia's showed resilience in 2009, buoyed by its robust domestic demand and commodity base. These trends along with relative political stability, superior growth performance to most other ASEAN economies, and loans from international organizations to finance the fiscal gap have buoyed investor confidence in the Indonesian economy and strengthened asset markets. Rising foreign direct investment and a loosening credit growth should help to boost growth through 2010. Downside risks include volatile capital flows, continued infrastructure deficiences, and political uncertainty.

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Associated Readings

Analysis Morgan Stanley Chetan Ahya, Deyi Tan and Shweta Singh Jul 09, 2010 ASEAN:The Leverage Lesson, Double Dip and the Rebalancing Game News IMF Jun 10, 2010 Statement at the Conclusion of the 2010 Article IV Consultation Mission to Indonesia Analysis ADB Apr 19, 2010 Asian Development Outlook 2010 - Macroeconomic Management Beyond the Crisis Analysis World Bank Apr 07, 2010 East Asia and Pacific Economic Update - Emerging Stronger from the Crisis