Country Forecast Indonesia Updater

  • ID: 2114052
  • May 2016
  • Region: Indonesia
  • 16 Pages
  • The Economist Intelligence Unit
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The president, Joko Widodo (known as Jokowi), will serve out his full five-year term in office. He is determined to push through as many economic and bureaucratic reforms as possible. However, Jokowi's relatively weak political support base will hinder the passage of large-scale reforms, especially in populist areas such as labour policy and land acquisition.

In August 2015 the president reshuffled his cabinet in an effort to reset his administration, but the influence of factions resistant to structural reform will remain strong. Jokowi looks set to retain his troubled partnership with his party, the Indonesian Democratic Party-Struggle (PDI-P), which is led by a former president, Megawati Sukarnoputri.

Jokowi will pursue a more singular, nationalist foreign policy than his predecessors, which could upset relations with some countries, notably within the Association of South-East Asian Nations (ASEAN). A tougher line on illegal foreign fishing vessels and drug offences could undercut the government's ambition to increase foreign direct investment.

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Country Forecast Indonesia Updater

Country forecast overview: Highlights

Country forecast overview: Key indicators

Country forecast overview: Business environment rankings

Country forecast overview: Indonesia's business environment at a glance
Policy towards private enterprise and competition
Policy towards foreign investment
Foreign trade and exchange controls
The labour market

Fact sheet

Outlook for 2016-20: Political stability

Outlook for 2016-20: Election watch

Outlook for 2016-20: International relations

Outlook for 2016-20: Policy trends

Outlook for 2016-20: Fiscal policy

Outlook for 2016-20: Monetary policy

Outlook for 2016-20: Economic growth

Outlook for 2016-20: Inflation

Outlook for 2016-20: Exchange rates

Outlook for 2016-20: External sector

Data summary: Global outlook

Data summary: Gross domestic product, current market prices

Data summary: Gross domestic product, at constant prices

Data summary: Gross domestic product by sector of origin

Data summary: Growth and productivity

Data summary: Economic structure, income and market size

Data summary: Fiscal indicators

Data summary: Monetary indicators

Data summary: Employment, wages and prices

Data summary: Current account and terms of trade

Data summary: Foreign direct investment

Data summary: External debt

Data sources and definitions
Global data
Domestic data

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