The Economy And Business In Indonesia

Indonesia's economic growth in the last quarter of this year slowed to 5.6 percent . This weakness is expected to continue into next year .Thus, Indonesia's economic growth in 2014 is only 5.3 percent . Therefore the Indonesian economy continues to adjust to a number of conditions .Weakening commodity prices , external financing conditions are more stringent , and the decline in domestic demand compared to last year making Indonesia's economic growth should continue to be adjusted .See World Bank , international capital markets next year to remain volatile despite a high -income economy began to recover . Therefore , the government should make policies that can protect the economy from external influences and to encourage growth .A number of policies that have been issued by the Indonesian government is quite right to face the ever- changing conditions . Exchange rate policy to remove and determine the value of interest rates to ease the pressure on the current account is a good example .In addition, the policy of reducing fuel subsidies is also very appropriate because it will protect Indonesia from short-term fiscal risks , as well as providing funds for long-term investments in infrastructure and social programs .However, the World Bank warned , it's a good policy will not succeed if it is not communicated . The Indonesian government has not considered strong commitment to implement its policies , the government is not enough to convince the market that the economic turmoil had anticipated .Market and investors must be convinced that the government's focus in the face of economic conditions to produce a coordinated policy reforms . Moreover , the potential of the domestic market as well as other potential Indonesian made ​​this country is still very attractive . If the government manages to convince markets , foreign direct investment can be increased .Although Indonesia's economy has improved compared to last August , the government claimed to remain alert to the global situation which could have an impact on the regional economy . And still coordinate with the Financial Stability Coordination Forum ( FKSSK ) to monitor the global situation .Despite the stabilization in which the policy was issued LPS response , Bank Indonesia, FSA , and the government has shown positive results , but the government should continue to see future risks should be monitored properly and carefully .Who became the concentration of the current government is constantly taking action to push the current account deficit and developments in the banking sector and capital markets . FKSSK will continue to monitor and take necessary precaution .Of fiscal indicators , although there is pressure on the tax revenue target due to commodity prices , but the deficit can still be kept within safe limits . Financing of fiscal secure financing . Sovereign Debt in recent weeks have shown improvement . SUN 10 years ago was 7.4 percent . Compared to 8.9 percent last month . Bond stabilization has occurred and incoming capital flows have also occurred .