Country Forecast Indonesia Updater

  • ID: 2114052
  • August 2016
  • Region: Indonesia
  • 17 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. Nearly two years into his term, he has become more confident in his position and has brought in technocrats to run economic portfolios through two cabinet reshuffles. He will continue focusing on regulatory reforms to improve the business environment and attract investment into Indonesia. However, politically difficult reforms, such as changes to the labour market, will remain hostage to vested interests in the House of People's Representatives (DPR, the legislature).

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 (FDI).

In January 2016 Bank Indonesia (BI, the central bank) entered into a period of monetary policy loosening, cutting its benchmark interest rate, the BI rate, for the first time in almost three years. The Economist Intelligence Unit expects BI to continue easing monetary policy in the early part of the forecast period, as inflation will be within the central bank's 3-5% target range.

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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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