Indonesia: 2011 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Indonesia
IMF Staff Country Reports, October 21, 2011
Source details
- Canonical URL
- Indonesia: 2011 Article IV Consultation: Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Indonesia
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Bibliographic details
- Published: October 21, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781463922696.002
Summary of economic performance and outlook
- The Indonesian economy proved resilient during the global financial crisis, and has since continued to grow at a robust rate.
- Increases in both foreign and domestic investment are expected to offset lower growth contributions from net exports as import demand rises.
- A key risk is deterioration in growth for advanced economies.
- Continued exchange rate flexibility will be important in managing volatile capital flows, and the build-up in reserves.
- Fiscal developments are consistent with the government’s firm commitment to sustainability and strong public finances.
Major themes and policy implications
- Exchange rate policy:
- Continued exchange rate flexibility is highlighted as important to manage volatile capital flows and reserve accumulation.
- Investment and external sector:
- Rising foreign and domestic investment are expected to compensate for lower growth contributions from net exports due to higher import demand.
- External risk assessment:
- Deterioration in growth for advanced economies is identified as a key risk to Indonesia’s outlook.
- Fiscal stance:
- Fiscal developments are described as consistent with a firm commitment to sustainability and strong public finances.
Subject classification and keywords
- Subject: Banking, Financial markets, Fiscal policy, Inflation, Money markets, Prices, Public debt, Revenue administration
- Keywords: August, bond price fluctuation, CR, export proceeds, Global, headline inflation, Indonesian market, Inflation, inflation expectation indicator, investment activity gains momentum, ISCR, Money markets, proceeds