Indonesia Economic Quarterly, October 2012

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.

Bibliographic Details

Main Author:	World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Jakarta 2012-10
Subjects:	ACCOUNTING, ADVERSE SHOCKS, ASSET PRICE, BALANCE OF PAYMENT, BALANCE SHEETS, BANK SUPERVISION, BANKING SECTOR, BASIS POINTS, BENCHMARK YIELD, BENEFICIARIES, BILL, BOND INDEX, BOND ISSUE, BOND MARKET, BOND PRICES, BONDS, BUDGET DEFICIT, CAPITAL ADEQUACY, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL GOODS, CAPITAL GOODS IMPORTS, CAPITAL INFLOWS, CAPITAL INVESTMENT, CAPITAL MARKETS, CAPITAL STOCK, CASH BALANCES, CASH TRANSFER, CENTRAL BANK, CLARITY, COMMERCIAL BANK, COMMERCIAL BANK LENDING, COMMODITY MARKET, COMMODITY PRICE, COMPETITIVENESS, CONSENSUS FORECASTS, CONSUMER CREDIT, CONSUMER PRICE INDEX, CONSUMER PRICE INFLATION, CONSUMPTION EXPENDITURE, CONSUMPTION GROWTH, CORE INFLATION, CORPORATE BOND, CORPORATE BOND ISSUANCE, CREDIT GROWTH, CREDIT QUALITY, CURRENCY DEPRECIATION, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICIT, DEBT SECURITIES, DEBT STOCK, DEFICIT FINANCING, DEFICITS, DEPOSITS, DEVELOPING COUNTRY, DISBURSEMENT, DISTORTIONS, DOMESTIC CAPITAL, DOMESTIC DEMAND, DOMESTIC DEMAND GROWTH, DOMESTIC ECONOMY, DOMESTIC SAVINGS, DOWNSIDE SCENARIOS, DOWNWARD PRESSURE, DRAG ON GROWTH, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EMERGING ECONOMIES, EMERGING MARKET, EMERGING MARKET BOND, EMERGING MARKET DEBT, EMERGING MARKET ECONOMIES, EMERGING MARKET EQUITIES, EQUIPMENT, EQUITIES, EQUITY HOLDINGS, EQUITY INDEX, EQUITY MARKETS, EXCHANGE RATE, EXPENDITURES, EXPORT EARNINGS, EXPORT GROWTH, EXPORT PERFORMANCE, EXPORT SHARE, EXPORTERS, EXTERNAL BALANCES, EXTERNAL BORROWING, EXTERNAL DEBT, EXTERNAL DEMAND, FEDERAL RESERVE, FINANCIAL ASSET, FINANCIAL CRISIS, FINANCIAL INSTITUTION, FINANCIAL MARKET, FINANCIAL MARKET PARTICIPANTS, FISCAL DEFICIT, FISCAL POLICY, FISCAL POSITION, FIXED CAPITAL, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE MARKET, FOREIGN INVESTMENT, GLOBAL BOND, GLOBAL DEMAND, GLOBAL ECONOMY, GLOBAL SLOWDOWN, GOVERNMENT BOND, GOVERNMENT BOND YIELD, GOVERNMENT DEBT, GOVERNMENT FINANCING, GOVERNMENT INVESTMENT, GOVERNMENT SECURITIES, GOVERNMENT SECURITIES MARKET, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, GROWTH PERFORMANCE, GROWTH RATES, HOLDING, IMPORT, IMPORT DEMAND, IMPORT GROWTH, IMPORT PRICES, INCOME TAX, INFLATION, INFLATION RATE, INFLATIONARY PRESSURES, INSURANCE, INTEREST PAYMENTS, INTERNATIONAL BANK, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL MARKET, INTERNATIONAL PORTFOLIO, INVENTORY, INVESTMENT DEMAND, INVESTMENT FLOWS, INVESTMENT INFLOWS, INVESTMENT LEVELS, INVESTMENT LOANS, INVESTMENT POLICY, INVESTMENT RATIO, INVESTMENT REGULATION, INVESTMENT SPENDING, INVESTOR CONFIDENCE, LIQUIDITY, LIQUIDITY MANAGEMENT, LOAN, LOCAL CURRENCY, LOCAL GOVERNMENT, MARKET CONDITIONS, MONETARY EXPANSION, MONETARY POLICY, MONETARY TRANSACTIONS, NON-PERFORMING LOANS, OIL PRICE, OPPORTUNITY COST, POLICY RESPONSE, POLITICAL UNCERTAINTY, PORTFOLIO, PORTFOLIO CAPITAL, PORTFOLIO INFLOWS, PORTFOLIO INVESTMENT, PRICE INDICES, PRICE MOVEMENTS, PRIVATE CONSUMPTION, PRIVATE DEBT, PUBLIC INVESTMENT, PUBLIC SPENDING, RAPID GROWTH, REAL EXPORTS, RECESSION, RESERVES, RETURN, RETURN ON ASSETS, SECONDARY MARKET, SLOWDOWN, SOVEREIGN BOND, SOVEREIGN BOND MARKETS, STRUCTURAL REFORMS, SUPPLY-SIDE, SURPLUS, SUSTAINABLE GROWTH RATE, TAX, TOTAL INVESTMENT, TRADE BALANCE, TRADE DATA, TRADE SURPLUS, TRADING, TRADING PARTNER, TRADING PARTNERS, TREASURIES, TREASURY, UNCERTAINTIES, UNEMPLOYMENT RATE, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/126161468039867259/Indonesia-economic-quarterly-maintaining-resilience https://hdl.handle.net/10986/26645
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