Indonesia Economic Outlook
September 18, 2018Growth picked up in the second quarter on stronger private and government consumption, and the economy appears to have performed well so far in the third quarter. Industrial production and tourist arrivals boomed in July, while retail sales were solid in the same month. Moreover, in August consumer sentiment was firmly in optimistic territory and the manufacturing PMI rose to a multi-year high on faster output and new orders growth. However, the external sector remains a key vulnerability, with a second consecutive monthly trade deficit recorded in August. This is putting downward pressure on the rupiah, which has reached a 20-year low against the dollar in recent weeks as part of a wider emerging-market selloff, forcing the central bank to dip into its international reserves to support the currency. As part of a broader package aimed at propping up the rupiah, the government recently announced higher import taxes on over 1,000 products.
Indonesia Economic GrowthDomestic demand should continue to underpin growth going forward, with fixed investment supported by higher commodity prices and government consumption likely receiving a boost ahead of elections in April 2019. However, tighter monetary policy, delays to public investment projects, cooling Chinese demand and U.S.-China trade tensions pose downside risks to growth. Met the why particular panelists see GDP expanding 5.2% in 2018. In 2019, the economy is forecast to grow 5.3%, which is unchanged from last month’s forecast.
Indonesia Economy Data
5 years of Indonesia economic forecasts for more than 30 economic indicators.
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|Bond Yield||8.18||-0.05 %||Sep 24|
|Exchange Rate||14,868||0.05 %||Sep 24|
|Stock Market||5,882||-0.32 %||Sep 24|
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Indonesia Economic News
September 17, 2018
According to Statistics Indonesia, the country recorded a trade deficit of USD 1.0 billion in August, contrasting the USD 1.7 billion surplus registered in the same month last year and marking the second consecutive monthly deficit.
September 11, 2018
In July, retail sales grew 2.9% over the same month last year, up from June’s 2.3% increase.
September 3, 2018
In August, consumer prices declined 0.05% from the previous month, contrasting July’s 0.28% increase.
Indonesia: Bank Indonesia hikes rates in August; government announces import restrictions to stabilize currency
August 16, 2018
At its 14 and 15 August monetary policy meeting, Bank Indonesia (BI) raised the seven-day reverse repo rate by 25 basis points to 5.50%.
August 16, 2018
On 16 August, President Joko Widodo presented the 2019 budget to parliament.