Indonesia

RGE's Q1 2010 Indonesia Outlook

Indonesia’s economy grew by an estimated 4.5% in 2009, led by strong consumer and government spending, favorable political conditions, capital inflows and commodity exports to Asia. RGE forecasts Indonesia’s domestic demand-driven economy to grow in 2010 as improving global conditions boost private investment and commodity exports and consumer spending maintains its momentum. Due to implementation delays in 2009, fiscal spending will continue to boost the economy into 2010. With faster economic recovery, rate hikes might come in as soon as Q2 2010, depending on credit conditions and commodity prices. Asset markets and commodities, despite being attractive, will largely take cues from global recovery and risk appetite—which is a potential risk to growth in 2010. Strong domestic demand, resource abundance and ongoing reforms will help Indonesia attract foreign investment, develop the commodity sector and attain its potential growth (6%-7%) by 2012. On the other hand, continued...

Read the Q1 2010 Indonesia Outlook.