Indonesia Economic Quarterly, October 2012 : Maintaining Resilience
The Indonesia economic quarterly reports on and synthesizes the past three months' key developments in Indonesia's economy. It places them in a longer-term and global context, and assesses the implications of these developments and other...
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| Language: | English en_US |
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World Bank, Jakarta
2017
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| Online Access: | http://documents.worldbank.org/curated/en/126161468039867259/Indonesia-economic-quarterly-maintaining-resilience http://hdl.handle.net/10986/26645 |
| Summary: | The Indonesia economic quarterly reports
on and synthesizes the past three months' key
developments in Indonesia's economy. It places them in
a longer-term and global context, and assesses the
implications of these developments and other changes in
policy for the outlook for Indonesia's economic and
social welfare. Indonesia's economic growth has so far
remained resilient to the weakness in the global economy.
Amidst a still uncertain outlook, Indonesia will need to
prepare itself for the potential consequences of
China's slowdown and additional falls in commodity
prices, and for the possibility of renewed turbulence in
financial and commodity markets. Continuing to strengthen
the policy framework to deal with shocks and building
economic resilience through improvements in the quality of
spending and in the regulatory environment will be key to
maintaining, and improving further, Indonesia's strong
recent growth performance. Progress towards these goals
could be tested as the 2014 election year approaches.
Indonesia's economy maintained its robust pace of
growth in the second quarter of 2012, expanding by 6.4
percent year-on-year, up slightly from 6.3 percent in the
first quarter. Buoyant private consumption continued to lift
domestic demand, and investment spending also increased
strongly. Despite the rapid pace of economic activity,
consumer price inflation has remained moderate to date.
Headline CPI inflation fell back to 4.3 percent year-on-year
in September after edging up to 4.6 percent in August, when
it was pulled higher temporarily by the Idul Fitri holidays.
Core inflation has remained stable, just above 4 percent.
Indonesia's current account moved further into deficit
in the second quarter of 2012. Structurally, the trend
towards current account deficits reflects consistently
strong domestic investment relative to the level of domestic
savings. The slowdown in exports over 2012, alongside
generally strong import demand, has seen the large goods
trade balance surpluses of recent years narrow and this,
coupled with consistent net outflows in the income and
services sub-accounts, moved the overall current account
into a deficit of 3.1 percent of gross domestic product
(GDP) in the second quarter of 2012. |
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