Indonesia Economic Quarterly, March 2015 : High Expectations

Effective January 1, 2015, Indonesia’s new government took the decisive step of implementing a new fuel pricing system, dramatically reducing gasoline and diesel subsidy costs. This paved the way for the government’s first budget, passed in February, to shift spending towards development priorities, especially infrastructure, the allocation for which is double the 2014 outturn. Successful implementation of the bold vision of the budget, however, will require overcoming administrative constraints to spending and dramatically lifting revenue collection performance. Achieving this, and having the benefits flow through into faster economic growth and poverty reduction, is likely to take time, especially with the pace of sustainable economic growth having slowed, due partly to lower commodity prices. Beyond the fiscal sector, reforms taken in the first months of the government’s term in key areas such as investment licensing also face complex challenges to make operational. The government has signaled its strong reform intentions, and raised expectations. Early progress will now need to be consolidated by effectively implementing major reforms and the budget posture, against a still-challenging global economic backdrop for Indonesia.

Bibliographic Details

Main Author:	World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	Washington, DC 2015-03
Subjects:	TOTAL REVENUE, PURCHASE PRICE, MONETARY POLICY, RISKS, GOVERNMENT EXPENDITURES, ECONOMIC GROWTH, COMMODITY EXPORT, PRICE LEVELS, PRODUCTION, PRICE INCREASES, DEFLATION, PHILLIPS CURVE, INCOME, MACROECONOMIC MANAGEMENT, PROJECTIONS, EXPECTATIONS, INTEREST RATE, REAL GDP, EXCHANGE, CORPORATE PROFITS, GDP PER CAPITA, LIQUIDITY, EXPORTS, PRODUCTION INCREASES, PORTFOLIO, FISCAL POLICY, WELFARE, RISK PREMIUM, BONDS, GROSS VALUE, INCENTIVES, MACROECONOMIC CONDITIONS, VARIABLES, PRICING, SUBSIDY, PRICE, BENCHMARKS, INPUTS, RETURNS TO SCALE, PAYMENTS, WEALTH, CENTRAL BANKS, INFLATION, TRENDS, CENTRAL BANK, MARKET PARTICIPANTS, DEVELOPMENT, MACROECONOMIC STABILITY, TRADE BALANCE, TOTAL FACTOR PRODUCTIVITY, COSTS, EXPORT GROWTH, RENT, CONSTANT RETURNS TO SCALE, PRODUCTIVITY, CRITERIA, DEBT, MARKETS, NET EXPORTS, POTENTIAL OUTPUT, TRADE POLICY, TAX REVENUES, REAL INTEREST RATE, INVENTORIES, NATURAL RESOURCES, BANK CREDIT, AVERAGING, GROSS DOMESTIC PRODUCT, SUBSIDIES, COMMODITY PRICE, TAXES, FISCAL DEFICIT, PROFIT MARGIN, UNEMPLOYMENT, INCOME TAXES, COMMODITY EXPORTS, PRODUCTIVITY GROWTH, CONSUMPTION, GROSS FIXED CAPITAL FORMATION, HUMAN CAPITAL, OPPORTUNITY COST, CAPITAL, WAGES, WHOLESALE PRICES, ECONOMIC OUTCOMES, UNEMPLOYMENT RATE, FINANCIAL CRISIS, VALUE, COMPETITIVENESS, CREDIT, MACROECONOMICS, TRADE DEFICIT, DEMAND, AGGREGATE DEMAND, EXCESS DEMAND, ECONOMY, AGRICULTURE, CONSUMERS, MEASUREMENT, SHARES, BENCHMARK, MONETARY POLICIES, PRODUCTION FUNCTION, OUTPUT, GOVERNANCE, TAXATION, TRADE, GOVERNMENT BONDS, GDP, ECONOMIC ASSUMPTIONS, GOODS, ECONOMIES OF SCALE, BANK LOANS, FINANCIAL MARKET, GROWTH RATE, ECONOMIC EXPANSION, INVESTMENT, NATURAL RESOURCE, SHARE, COMPARATIVE ADVANTAGE, ECONOMIC INFORMATION, SUPPLY, ECONOMIC TRENDS, REVENUE, CONSUMER PRICE INDEX, TOTAL OUTPUT, GDP DEFLATOR, COMMODITY PRICES, OUTCOMES, COMMODITY, PRICES, BENEFITS, PRODUCTION COSTS, DEVELOPMENT POLICY,
Online Access:	http://documents.worldbank.org/curated/en/2015/07/24848194/indonesia-economic-quarterly-high-expectations http://hdl.handle.net/10986/22505
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