Indonesia’s current account challenge. Part 1 – The current economic environment. Richard Dutu Economist, Indonesia Desk OECD Economic Department. The current economic environment. GDP growth, 2002-2013. GDP growth has been trending down recently. Average GDP per capita growth, 2002-2012.
Part 1 – The current economic environment
Economist, Indonesia DeskOECD Economic Department
GDP growth has been trending down recently.
Yet Indonesia remains well placed regarding recent GDP/capita growth.
Growth is supported by consumption as both investment and export growth have slowed.
Metal price index
Thermal coal prices
Export growth is down due to lower commodity prices.
Indonesia exports to the entire world, but China and Japan account for 27%.
Credit growth is strong and steady.
The fiscal balance remains sustainable.
As is Indonesia’s government debt.
Inflation is edging up, pushed by food prices.
Although transportation, communication and finance have contributed recently.
The rupiah has depreciated dramatically in recent months.
And Bank Indonesia has had to raise rates.
Indonesia’s yields have gone significantly higher than its neighbours.
Equities have underperformed in the region recently.
After recovering, capital inflows slowed in November.