Indonesia Economic Outlook
November 14, 2017Economic momentum disappointed in the third quarter, with GDP growth only edging up a notch to 5.1% annually. The uptick was driven by accelerations in fixed investment and government spending, while household spending was stable at the previous quarter’s reading and inventories dragged on the result. An improvement in the business climate supported the robust growth in investment, while the government’s ambitious reforms and infrastructure program have also borne fruit. More recent data point to a soft start to the fourth quarter: The manufacturing PMI fell in October and consumer confidence eased. In the political arena, the parliament approved the 2018 budget at the end of October. The targeted deficit of 2.19% of GDP is ambitiously smaller than the revised 2.92% deficit planned for 2017. Notably, while infrastructure remains a high priority, its share of expenditure was broadly unchanged from 2017—a contrast from the Widodo government’s previous budgets, which ramped up its share of expenditure.
Indonesia Economic GrowthGrowth is projected to gradually strengthen as government spending and investment pick up pace. Key risks to the country’s outlook stem from rising political noise ahead of the 2019 election or a sharp slowdown in China’s economy. FocusEconomics panelists see GDP expanding 5.3% in 2018, which is unchanged from last month’s forecast. In 2019, the economy is seen growing 5.4%.
Indonesia Economy Data
5 years of Indonesia economic forecasts for more than 30 economic indicators.
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|Bond Yield||6.51||-0.05 %||Dec 06|
|Exchange Rate||13,539||0.05 %||Dec 06|
|Stock Market||6,036||-0.32 %||Dec 06|
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Indonesia Economic News
December 14, 2017
At its 13 and 14 December monetary policy meeting, Bank Indonesia decided to make no changes to its monetary policy, holding the BI seven-day Reverse Repo rate unchanged at 4.25%.
December 13, 2017
In October, retail sales increased 2.2% over the same month last year, which was above September’s 1.8% rise.
December 8, 2017
In November, consumer prices increased 0.20% compared to the previous month, which was above October’s 0.01% increase.
December 1, 2017
Conditions in Indonesia’s manufacturing sector strengthened in November, according to Nikkei and IHS Markit.
November 14, 2017
According to Statistics Indonesia (BPS), a trade surplus of USD 0.9 billion was recorded in October (October 2016: USD 1.2 billion), undershooting the USD 1.6 billion surplus that market analysts had expected. Exports grew 18.4% annually in October, accelerating from the 15.7% expansion recorded in September.