Skip to Main Navigation

Indonesia economic and social update (Inglês)

This October 2006 edition of Indonesia economic and social update reports that by Mid 2006 Indonesia was showing signs of a solid recovery from the dramatic fiscal and monetary policy adjustments in late 2005 which slowed the economy in the first half of 2006 and increased poverty. Unfortunately this year's economic slowdown was also accompanied by additional natural disasters. On a more positive note, reconstruction in Aceh and Nias is now well underway, with thousands of houses built and more under construction. The key economic challenge facing the country involves turning an accelerating cyclical upturn into sustained longer term growth while addressing poverty and improving disaster preparedness and response. The report stressed that despite the increased spending on poverty programs, poverty rose from 16 percent to 17.75 percent between 2005 and 2006. Further, the update revealed that a turnaround in the current account, balance in the capital account4 and a strengthening Rupiah allowed Bank Indonesia to add substantial international reserves. The government's policy recognizes the need to reinforce this improving macroeconomic position with investment climate reforms. To accomplish this three key policy packages are being implemented. Each of these packages includes important reform measures but there have been implementation problems. Measures have sometimes slipped or been dropped and the quality of the reforms enacted has not been consistent. In sum both fiscal and monetary polices are now supportive of higher growth. There are two challenges. First is to maintain this growth throughout 2007 and into the longer term. This will require investment and financial sector reforms that trigger business confidence and ramping up public and private infrastructure spending to overcome binding energy and transport constraints. The second challenge is to reverse the negative impact on the poor that policy adjustments and rice prices have created through more and better pro-poor public spending.


  • Data do documento


  • TIpo de documento

    Documento de Trabalho

  • No. do relatório


  • Nº do volume


  • Total Volume(s)


  • País


  • Região

    Leste Asiático e Pacífico,

  • Data de divulgação


  • Disclosure Status


  • Nome do documento

    Indonesia economic and social update

  • Palavras-chave

    accounting, adverse impact, adverse impacts, agriculture, automobile, Autonomy, bad debts, Balance of payments, bank deposits, Bank Indonesia, Bank loans, Banking Regulation, Banking Sector, business licenses, Capital adequacy, Capital adequacy ratios, Capital Expenditures, capital markets, CAR, cars, cement, Central Bank, central governments, commodities, commodity prices, competitiveness, consolidation, consumers, debt, deposits, disposable income, domestic capital markets, drilling, durable goods, electricity, electricity tariff, employment, exchange rates, export growth, exports, financial institutions, financial management, Financial markets, Financial Performance, financial reform, Financial sector, financial stability, Fiscal Policy, Foreign investors, fuel, fuel price, fuel price increase, fuel price increases, fuel prices, fuel subsidies, gas, gas imports, gas tax, GDP, government bonds, Government regulation, growth rate, income tax, income taxes, inflation, inflation rate, Infrastructure Development, infrastructure projects, insurance, interest payments, interest rate, interest rates, international reserves, investment climate, investment growth, investment in roads, investment policies, loan loss provisions, local government, local governments, M1, maturities, monetary policy, moral hazard, mutual fund, natural resources, net exports, offerings, oil, oil company, oil exports, oil imports, Oil price, oil prices, oil production, portfolio, portfolio investment, power, price increases, private investment, privatization, productivity, productivity growth, public investment, rail, rail links, rating agencies, Real exchange rates, Real interest rate, refinery capacity, retained earnings, Revenue Sharing, Risk Management, risk sharing, ROA, ROE, Safety, State Banks, State Owned Enterprises, statements, stock prices, subsidiaries, tax, tax administration, tax measures, tax rates, Tax Revenues, time deposits, toll, trade balance, transparency, transport, transportation, transportation equipment, unemployment, unemployment rate, venture capital, venture capital companies, working capital



Versão oficial do documento (pode conter assinaturas, etc.)

  • PDF oficial
  • TXT*
  • Total Downloads** :
  • Download Stats
  • *A versão do texto é um OCR incorreto e está incluído unicamente em benefício de usuários com conectividade lenta.