Indonesia Economic Quarterly FY14 : Compilation of the July 2013, October 2013, December 2013 and March 2014 Indonesia Economic Quarterly Reports
The Indonesia Economic Quarterly (IEQ) has two main aims. First, it reports on the key developments over the past three months in Indonesia's economy, and places these in a longer term and global context. Based on these developments and on pol...
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Format: | Economic & Sector Work |
Language: | English en_US |
Published: |
Washington, DC
2014
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Online Access: | http://documents.worldbank.org/curated/en/2014/06/19794544/indonesia-economic-quarterly-fy14-compilation-july-2013-october-2013-december-2013-march-2014-indonesia-economic-quarterly-reports http://hdl.handle.net/10986/20013 |
Summary: | The Indonesia Economic Quarterly
(IEQ) has two main aims. First, it reports on the key
developments over the past three months in Indonesia's
economy, and places these in a longer term and global
context. Based on these developments and on policy changes
over the period, the IEQ regularly updates the outlook for
Indonesia's economy and social welfare. Second, the IEQ
provides a more in-depth examination of selected economic
and policy issues, and analysis of Indonesia's
medium-term development challenges. It is intended for a
wide audience, including policymakers, business leaders,
financial market participants, and the community of analysts
and professionals engaged in Indonesia's evolving
economy. Indonesia's fiscal and monetary policy
settings will continue to play a key role in facilitating
the adjustments now taking place and in minimizing
associated risks. There are, however, trade-offs between the
objectives of restraining inflation, supporting growth and
adjusting the current account deficit to the tighter
financing environment. Monetary policy faces the challenge
of calibrating interest and exchange rates so as to guard
against rising inflationary pressures as cost pressures rise
(such as from the pass-through of the weaker currency or
wage increases) while facilitating improvements in the
external balances, and without unduly crimping economic
growth and weakening public and private sector balance
sheets. With the 2014 budget under discussion with
Parliament, fiscal policy faces the challenge of slower
revenue growth, and higher energy subsidy and nominal
debt-financing costs, raising the importance of lifting
further the quality of spending and of revenue mobilization.
In response to the intensification of financial market
pressures, and in conjunction with the monetary policy and
currency market measures mentioned above, on August 23 the
Government announced a policy package containing measures
intended to improve the current account, safeguard
purchasing power and facilitate growth, contain inflationary
pressure, and maintain investment flows. Some of the reform
measures involved retracting interventionist policies on
trade and proposals for improving certainty in the business environment. |
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