Indonesia: Demand will buoy economy

Strong domestic demand continued to underpin growth in the first half of 2008. Investment was particularly robust. Imports are growing faster than exports, but the trade and current accounts are still in healthy surpluses. Inflation rose substantially following a hike in regulated domestic fuel prices in May.
Domestic demand, especially private consumption, is set to remain the main driver of growth in 2009. Exports are also likely to continue to perform reasonably well, despite the slowdown in global demand and falling commodity prices. Monetary policy is being tightened and measures to tackle worsening credit conditions are being taken. Outlays on fuel-price subsidies are being contained but the budget will continue to be vulnerable to fluctuations in international energy costs in the absence of a formal mechanism for adjusting domestic fuel prices.

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

OECD Observer Newsletter

Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :

Twitter feed

Digital Editions

Don't miss

Most Popular Articles

NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.

All rights reserved. OECD 2020