INDONESIA'S ECONOMY CONTINUES TO FACE UNCERTAINTIES IN 2019

By Andi Abdussalam

Jakarta, Dec 6 (Antara) - Indonesia's economic growth will continue to be affected by uncertain global economic conditions, so it would be difficult for the country to achieve a growth of 5.3 percent next year.          Senior Economist Boediono noted that the global economic conditions were still prone to crisis due to existing uncertainties, with an unpredictable trend.          "The world economy is still prone to instability and crisis," Boediono stated at a discussion forum "Winning in a Turbulent Economy" in Jakarta on Wednesday (Nov 28).          The crisis could arise anytime, and no one could predict its intensity. No single country as yet has an effective method to overcome the problem. Hence, Boediono, who was the vice president during the 2009-2014 period, believes that efforts to strengthen the domestic economy should continue to be made in the face of uncertainties.           This can be carried out through reinforcing coordination among the fiscal and monetary authorities as well as through continuous implementation of structural reforms.           "We have institutions that can coordinate well for monetary and structural reforms. This can reduce the risk of instability or the economic crisis," Boediono remarked.

RI'S ECONOMY RELATIVELY NOT AFFECTED BY BOMB ATTACKS

by Andi Abdussalam

Jakarta, May 15 (Antara) - The successive two day bomb attacks that left 22 people dead, including 10 suicide bombers in Surabaya on Sunday and Monday did not significantly affect the Indonesian economy.          According to Rino Donosepoetro, CEO of Standard Chartered Bank Indonesia, the suicide bomb attacks in Surabaya would not seriously affect Indonesia's economic growth. "The bomb attack is verily deplorable. I am convinced the people in Indonesia are already mature and the incident will not seriously affect Indonesia's economy which we have predicted that it will increase," Donosepoetro said on Monday.          He is of the view that the suicide bombings would not cause a setback in the Indonesian economy, expressing his optimism that the Indonesian economic fundamental is very strong.          On Sunday and Monday (May 13-14), East Java was rocked by suicide bomb attacks, killing 22 people, including 10 attackers.  The bomb attacks took place at three churches on Sunday morning and at the Surabaya Police Headquarters on Monday.

INDONESIAN ECONOMY TO PERFORM BETTER IN 2018

By Andi Abdussalam

Jakarta, Dec 21 (Antara) - The Indonesian economy, which is said to have had good momentum to grow higher at 5.17 percent this year, will continue to recover and perform better in 2018.         The Indonesian economy grew by an average of five percent during the past three years, while the World Bank has predicted that Indonesia's economy would reach 5.3 percent next year. Even, President Joko Widodo (Jokowi) has forecast that the country's economic growth could reach 5.4 percent next year.          "The Indonesian economy is showing a positive momentum, and it is quite strong. We will try to maintain the growth momentum, so that all components contributing to the growth can be maintained," Finance Minister Sri Mulyani Indrawati stated on Monday (Dec 4).         The government has earlier set a growth target of 5.1 percent in the 2017 State Budget but later increased to 5.2 percent in the 2017 Revised State Budget.         Bank Indonesia (BI/the central bank), however, estimated that the 5.2 percent target is unlikely to be achieved. According to Indrawati, the year-end growth projection is set at 5.17 percent, or 0.03 percent lower than that of the revised state budget for 2017. Yet, this figure is better than last year's growth a 5.02 percent.

INDONESIA NEEDS TO BRACE FOR GLOBAL CHALLENGES

By Andi Abdussalam

Jakarta, Dec 15 (Antara) - Indonesia is expected to have a relatively improved economic performance in 2017, while still needing to prepare itself in the face of global and domestic challenges.          Global economic uncertainties will continue to be felt next year and affect the Indonesian economy. The Indonesian Institute of Sciences (LIPI) has predicted that global challenges and internal conditions could affect Indonesia's national economic performance in 2017.          The global economic dynamism in 2017 could have an impact on Indonesian economic conditions. There will be uncertainties in Europe after the Brexit, and uncertainties in the direction of United States polices after the election of Donald Trump as US president.          Trump's protectionist policies, if implemented, would have a negative impact on market confidence, not only among business people and investors in the United States, but throughout the world.

RI'S ECONOMY STRONG IN FACE OF UNCERTAINTIES IN 2017

By Andi Abdussalam

Jakarta, Dec 8 (Antara) - This year's global economic uncertainties are expected to continue in 2017 and to affect the Indonesian economy, yet analysts have said Indonesia's economy is relatively strong in facing global challenges next year.         According to Finance Minister Sri Mulyani Indrawati on Wednesday, global conditions greatly affected Indonesia's economy this year, and the trend will continue in 2017. Therefore, in setting its economic assumptions for 2017, the government has adopted moderate steps.        In assuming its economic growth next year, the government has set itself a target of 5.1 percent, relatively lower than the rates estimated by many other institutions. However, Minister Mulyani argues that the 5.1 percent figure does not reflect any pessimism but optimism combined with prudence.         Several institutions have predicted higher growth. The World Bank, for example, has predicted Indonesia's economic growth at 5.3 percent for next year. Other institutions such as the Asian Development Bank (ADB), the Bloomberg Consensus Forecast, S&P, Fitch, and Moody's have set their predictions at 5.1 percent, 5.3 percent, 5.2 percent, 5.5 percent, and 5.2 percent, respectively.

JOKOWI'S ECONOMIC DEVELOPMENT GETS GOOD RESPONSE

By Andi Abdussalam

Jakarta, Oct 21 (Antara) - The economic development in two years of President Joko Widodo's (Jokowi's) government has gained positive responses from an economic analyst, financial authority and businesses.         The Jokowi-Jusuf Kalla (JK) government is considered to have made effective economic breakthroughs and given right responses to global and domestic economic turbulence.           Businesses also claimed to have gained benefit from the economic development in the past two years.          "We see that over the past two years, the economic development in the country has been relatively good," Hariyadi Sukamdani, the chairman of the Indonesian Business Employers Association (Apindo) , said in West Nusa Tenggara on Thursday.          Werry Darta Taifur, an economist specializing in analyzing economic development with the University of Andalas, West Sumatra,  said President Jokowi has been able to make effective economic breakthroughs in his two years at the helm.          "It was effective because people felt its impact. Of course, we still need one to two years to see the overall results."

RI ENTERS 2016, CONFIDENT OF SOLID ECONOMIC FOUNDATION

by Andi Abdussalam

Jakarta, Dec 28 (Antara) - Indonesia's economy grew at a slow pace in 2015 due to internal and external factors but government is confident of solid prospects as it enters 2016 since it has laid a strong economic foundation.          The global pressures and economic downturns, coupled with internal factors such as a drop in exports, low budget absorption, decline in the rupiah's exchange rate and weakening of the people's purchasing power, contributed to a slowdown in Indonesia's economic progress.          However, Indonesia's economic prospects remain strong as it enters 2016 since it took significant steps over the past few years.          "In 2015, we were able to build a good and strong foundation," President Joko Widodo (Jokowi) stated while opening a plenary cabinet meeting at his office in Jakarta on December 23, 2015.          The International Monetary Fund (IMF) also confirmed that the country's economic prospects remain solid, thanks to the significant steps it took over the past several years.          "They (the Indonesian government) have demonstrated wise monetary and fiscal management policies, supported by historic fuel oil subsidy reforms in 2015," Luis E. Breuer, the IMF team leader in Indonesia, said in a statement made available to Antara last week.

CONCERNS ABOUT RI'S ECONOMIC CONDITIONS MOUNT

By Andi Abdussalam

Jakarta, Aug 28 (Antara) - Concerns about the unfavorable economic conditions in the country and global economic uncertainty are growing following the Rupiah's depreciation to about Rp14,000 against the U.S. dollar.          The economic difficulties that have manifested themselves recently are posing a dangerous threat to the country and should be dealt with immediately.          "In terms of economic fundamentals, growth and socio-politics, the economic conditions today are different from those during the economic crisis of 2008 and 1998. But the government should not be careless because the present economic conditions can pose a dangerous threat,"  former President Soesilo Bambang Yudhoyono, or SBY, said at his Puri Cikeas residence in Bogor, West Java, on Thursday night.          The former President asked the government of President Joko Widodo (Jokowi) to remain alert in the face of present conditions, particularly with regards to the ongoing unfavorable economic conditions.          The same concern was also raised by Zulkifli Hasan, Chairman of the People's Consultative Assembly (MPR). He reiterated that the current economic conditions were different from those existing in 1998.

IMMEDIATE EFFORTS PARAMOUNT TO ACHIEVING NEXT YEAR'S PLANS

By Andi Abdussalam

Jakarta, Aug 20 (Antara) - The government must now begin preparing actions in response to its work plans based on the macroeconomic assumptions set in the draft 2016 state budget.          These efforts must be made amid gloomy economic developments both at home and across the world. After all, Indonesia's rupiah currency has continued to depreciate against the US dollar.          "The government should accelerate the development of import substitution industries and expedite the development of downstream industries for boosting exports," Enny Sri Hartati, the director of the Institute for Development of Economics and Finance, noted on Friday last week.          She said the government should start making preparations in the second semester of 2015 and should focus on developing import substitution and downstream industries in the face of its work plans for 2016.          Policies must be prepared in response to the 2016 budget assumptions, particularly the rupiah exchange rate, which was set at Rp13.4 thousand per US dollar.          "The Rp13.4 thousand exchange rate assumption is no longer a matter of whether it is realistic or not, but of how to prepare the required policies to achieve it next year," Hartati affirmed.

INDONESIA WILL NOT FEEL MAJOR IMPACTS OF GREEK ECONOMIC CRISIS

By Andi Abdussalam

Jakarta, July 4 (Antara) -- The economic crisis in Greece, which is now in a state of default after failing to pay debts worth 1.6 billion Euros to the International Monetary Fund, will not have major impacts on Indonesia.         Observers believe that Indonesia will not feel significant impacts, but the country's exports to Greece will be affected.     According to Bank Indonesia (BI), the impacts of the Greek economic crisis on Indonesia's economy will be relatively low because the country has implemented precautionary measures and its domestic economic fundamentals have been improving.         "We can see that the effects of the Greek crisis on Indonesia are not significant, even with Greece's risk-on risk-off approach. European countries also believe that the Greek crisis can be fought," Governor of BI Agus Martowardojo said at the House of Representatives building on Wednesday, July 1.

GLOOMY ECONOMY NEEDS IMMEDIATE SOLUTIONS

By Andi Abdussalam

Jakarta, June 29 (Antara) - The economic downturns that Indonesia is facing now need immediate solutions in order to prevent the recurrence of economic crisis that hit Indonesia in 1998.          Indonesia also needs to shift its orientation in economic development from reliance on commodity and raw materials to improving infrastructure and developing industries.          After all, economic slowdown is still expected to continue in the future because of inadequate infrastructure to support economic activities.          Thus, the economy will continue to be under pressure, and a slowdown will still continue to occur in the future. "It is forecast that there will be low economic growth for some time in the future which is why the government has set a lower economic growth target in 2016," Chief Economic Minister Sofyan Djalil noted on Tuesday last week.          He said the government has set a lower economic growth target of 5.5-6 percent in 2016. The target is set at a lower level, as it is predicted that the world economy in 2016 will continue to face pressures.

RI PREDICTED TO HAVE BETTER ECONOMIC CONDITIONS IN 2015

By Andi Abdussalam

Jakarta, Jan 6 (Antara) - Many have predicted that Indonesia will have better economic conditions this year as compared to last year.          The national economy in 2015 is believed to have better conditions offering business certainties that will lead to the achievement of a five-percent or higher economic growth, Head of the Permanent Committee for Food Resilience of the Indonesian Chamber of Commerce and Industry (Kadin) Fransiscus Welirang stated.         "Increasingly supportive macroeconomic conditions in 2015 will provide great business certainty and will be conducive to boost the flour industry to grow high or even higher than the national economic growth," he noted on December 30.          He noted that with the decision to reduce fuel subsidy, businesses will become better in 2015, as the economic conditions are expected to be more stable as compared to 2014.          Indonesia's economic performance is predicted to be better this year as the economy is expected to get ample fiscal room for infrastructure development. It will also be supported with domestic consumption, investment, legal certainty, and reduced subsidy.

NEXT GOVT EXPECTED TO CONTINUE PREVIOUS ECONOMIC PROGRAMS

By Andi Abdussalam

       Jakarta, Oct 18 (Antara) - The next government under Joko Widodo, who will be sworn in as Indonesia's seventh president on Monday, is expected to continue development programs begun by outgoing President Susilo Bambang Yudhoyono.

         The continuation of the programs, such as the Master Plan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI), along with other people-oriented programs, is important for the people and for the sustainability of the nation's development.
         "Development is a long process. It is not an event that lasts only for one or two years. In view of that, our energy, spirit, and life must be aimed at sustainable development efforts. It is not only the environment that must be preserved, but also the development efforts in stages," outgoing President Susilo Bambang Yudhoyono stated during a national meeting with regional civilian and military officials in Jakarta on Wednesday.
        Further, outgoing Vice President Boediono also asked upcoming vice president Jusuf Kalla to continue people-oriented programs, such as the rice for the poor scheme, in an effort to improve the welfare of those at the bottom of society.
        The MP3EI program is one of President Yudhoyono's main development programs in the economic field, which must be continued by the next government.

JOKOWI WARNED OF ECONOMIC "TIME BOMB" THREAT

By Andi Abdussalam
Jakarta, Aug 26 (Antara) - The next government will face various issues in improving people's welfare and in developing the country's economy amid low economic growth and high rates of poverty and unemployment.          "The next government under President-elect Joko Widodo, better known as Jokowi, must take bold steps such as conducting a budget 'revolution', removing economic distortions, and raising economic growth," Thomas Ola Langoday, dean of the Economic Faculty of the Widya Mandira Catholic University (Unwira), East Nusa Tenggara, said on Monday.          He noted that the next government should focus on increasing economic growth to about seven percent in order to prevent the emergence of time bomb threat.          If economic growth remains at only about five percent, as at present, the new government will encounter a vicious circle, which will be difficult to overcome, Thomas Ola Langoday warned.          "It should focus on maintaining annual economic growth at over seven percent," he added.

GOVERNMENT PREPARING NEW PACKAGE OF ECONOMIC POLICIES

by Andi Abdussalam

Jakarta, March 7 (Antara)- As the country experienced a trade deficit of US$657.2 million last September, after a trade surplus of US$132.4 million the previous month, the government introduced a number of policies to overcome the problem last year.          Now it is preparing a third package of economic measures to face this year's economic challenges.          It has twice, since August last year, introduced a package of economic policies, which proved to be effective in lowering the country's current account deficit to 3.2 percent of the national gross domestic product (GDP) in late 2013, from 4.4 percent in the second quarter of 2013.         According to the Central Bureau of Statistics (BPS), Indonesia reported a large trade surplus of US$776.8 million in November, which was  significantly higher than the revised US$24.3 million surplus of the previous month.         The trade surplus widened again to US$1.5 billion in December, as imports fell and exports of manufactured goods gathered momentum, according to the BPS.

STABLE ECONOMIC BASE BEING PREPARED FOR NEXT GOVERNMENT

By Andi Abdussalam

Jakarta, March 3 (Antara) - The current government, which will end term in October this year, is determined to lay a stable foundation for economic development for its successor to continue.          "We will continue maintaining economic stability and applying macroeconomic patterns in 2014. If we can do this, it can serve as an effective base for the implementation of development programs by the new government," Finance Minister Chatib Basri stated last Wednesday.          He added that the current government will do its best to maintain economic stability although it is facing political events this year, through a legislative election on April 9 and a presidential race on July 9.          The year of 2014 is actually a tough year. According to Bank Indonesia (BI) Governor Agus  Martowardojo, the economy still faces tough challenges in 2014, though this year it has been performing better than last year so far.          "Therefore, BI, regional governments and other stakeholders must intensify their cooperation in stabilizing the economy," he pointed out on Friday.

RI'S ECONOMIC GROWTH PREDICTED AT 5.5 - 6.0 PCT

By Andi Abdussalam

Jakarta, Dec 18 (Antara) - Indonesia's economy this year is forecast to grow below targets previously set at 6.3 percent as a result of the current account deficit, the central bank's increased benchmark rate and postponement of investments by investors.          The National Economic Committee (KEN) predicted that the Indonesian economy would grow 5.7 percent this year, slightly higher than the World Bank's forecast of 5.6 percent.         "What happens in 2013 is worse than the worst scenario we made in the economic outlook 2013. It turns out that it is difficult to predict what is to come, even for only a year," KEN Chairman Chirul Tanjung said at a seminar recently.          In the third quarter of this year, the country's economy grew only 5.6 percent.  He said imports have grown faster than exports because of the relatively strong growth of the country's economy amid the global slump.          "As a result, Indonesia suffered a trade deficit followed by the current account deficit," he said.          He added that Bank Indonesia¿s (BI/the central bank) policy of raising the benchmark interest rate had both advantages and disadvantages. BI raised its benchmark rate to a four-year high of 7.5 percent in November to prop up the weakening rupiah and reduce the persistently high current account deficit.

RI NEEDS 30 YEARS TO BECOME ADVANCED NATION

By Andi Abdussalam

Jakarta, Dec 14 (Antara) - Having been classified as a middle-income country since the early 1990s, Indonesia needs about 30 years to come out of what is called the 'middle-income trap' and move into the high-income group of countries.          Indonesia, according to the Organization of Economic Cooperation and Development (OECD) forecasts, is expected to shift from a middle-income nation to a high-income, or advanced country, by 2042.          "That is much slower than Malaysia, which is expected to make that transition by 2020, China (by 2026) and Thailand (by 2031)," the Head of the Asia Desk, OECD Development Centre, Kensuke Tanaka, told participants at a seminar last week.          The middle income trap refers to a situation in which a country that has become a middle-income nation fails to become a high-income country and experiences stagnation.          Based on international standards, a country is said to have fallen into a middle-income trap if it stays at the middle income level for 42 years.          Indonesia, Tanaka said, is only leading the Philippines, which is forecast to shift to an advanced nation by 2051, Vietnam by 2058 and India by 2059, because of being late in carrying out institutional developments and in anticipating changes.

GOVT BRACING ITSELF FOR FACING ECONOMIC UPHEAVALS

By Andi Abdussalam

Jakarta, Aug 22 (Antara) - The Indonesian government is formulating a package of economic policies it will announce on Friday in the face of current economic upheavals.          The Ministry of Finance, the central bank (Bank Indonesia/BI) and the Financial Service Authority (OJK) are now engaged in a close coordination an effort to maintain national economic stability.          "We are taking anticipatory measures in the face of the current economic conditions. We have now good communication and exchanged information to share similar views," Finance Minister Chatib Basri said after having a coordination meeting with BI Governor Agus Martowardojo and OJK Chief Commissioner Muliaman Hadad on Wednesday.          Chatib said that the current conditions were different from the economic crisis in 2008 or in 1998. But the government is preparing a step in the form of a package of economic policies to stave off current account deficit, the weakening of the rupiah currency and to maintain growth.          President Susilo Bambang Yudhoyono chaired a cabinet meeting to discuss efforts to face the current economic conditions on Wednesday.          "The government will formulate measures to maintain financial stability, curb inflation and maintain growth so that it will not drop sharply," the President said after chairing the meeting.          The package of economic policies is expected to be implemented even before next week.

ECONOMIC CONDITIONS IN 2011 CONDUCIVE

By Andi Abdussalam

Jakarta, Dec 28 (ANTARA) - Indonesia's macro economic conditions which were recently awarded the investment grade status have been viewed to be relatively conducive to economic developments in 2011.          During the year, Indonesia's economic indicators such as inflation, interest rates, foreign exchange reserves and others were considered to be improving. According to the Indonesian Chamber of Commerce and Industry (Kadin), these indicators showed that Indonesia's macro economic conditions were conducive to business developments.          The World Bank estimates that Indonesia's inflation at the end of 2011 will stand at 3.6 percent (year-on-year/yoy).  "The World Bank projection for 2011 inflation is 3.6 percent (yoy), certainly with a sustained increase in the price of components that are vulnerable to shocks," World Bank Lead Economist for Indonesia Shubham Chaudhuri said.         In the meantime, Bank Indonesia (BI) recorded that Indonesia's foreign exchange reserves in the year ended on November were recorded at US$111.32 billion. Though it fell from US$113.96 billion the month before, yet it was enough to finance imports.         "The foreign exchange reserves are enough to finance imports and repay the government's foreign debts for 6.4 months," the head of Bank Indonesia's public relations bureau, Difi A Johansyah, said.         Bank Indonesia (BI) has also lowered its key rate by a total of  75 basis points since October 2011.         Regarding the economic growth in 2011, the World Bank has predicted that Indonesian economic growth in 2011 would reach 6.4 percent. "Indonesian economy remains strong at a good position to face external turmoil, because its growth in 2011 is predicted to remain at the level of 6.4 percent," World Bank lead economist for Indonesia, Subhan Chaudri, said in the Indonesia Economic Quarterly.         He said Indonesian real economy remained strong in the third quarter of 2011 with the year on year Gross Domestic Product rose by 6.5 percent in the three consecutive semesters.  Besides, private consumption growth also remained strong like in the real export, although it dropped a bit in the second quarter following the global economic situation.         Although the foreign direct investment (FDI) slowed down in the past quarter, it was relatively strong and much bigger than the average FDI in the past two years.        And therefore he said the economic growth in 2011 was predicted to be around 6.4 percent.        Kadin Chairman Suryo Bambang Sulisto told a press conference on Wednesday that Indonesia's economic growth this year was predicted to be high while the inflation rate was relatively low in line with the improving business tendency.         Therefore, in line with the BI step to cut its rate to 6 percent, Kadin expressed hope that banks would lower their lending rates in 2012 to the 8 percent level.         "I think the 8 percent level is still realistic to be achieved. This should be achieved through the hard work of the government," said Suryo adding that it could not be understood if the BI Rate had been lowered but the landing rates were still high.         Regarding the economic growth in 2012, Suryo Bambang Sulisto said Kadin had predicted that it would slightly be lower than that in 2011, namely at a range between 6.2 and 6.4 percent.          If the government did not take anticipatory steps, global crisis will have heavy impacts on Indonesia's economic growth, so that the growth in 2012 will likely be lower than that in 2011.          Kadin also revealed its macro economic indicators for 2012,  namely inflation at a range of between 3.5 and 5.5 percent, crude price at US$90 per barrel, benchmark rate at 6.0 percent, poverty at 11.7 percent, rupiah exchange rate at a range of between Rp8,900 and Rp9,100 per US dollar and unemployment rate at 6.3 percent.         "The global crisis will obviously affect Indonesia so that the government should take anticipatory steps in the face of its negative impacts," Suryo said.         On the other hand, Indonesia's achievement in reaching an investment grade status indicated its strong macro economic fundamentals. The World Bank itself has hailed this achievement.         "The success of Indonesia to regain its investment grade status reflected its strong economic fundamentals that the government has successfully developed in the last ten years," the World Bank said in press released last week.          Even during the 2008-2009 global economic crises, Indonesia was able to withstand turmoil and to maintain its economic growth amid the downward trend of the global economic growth.          On December 15, 2011, International rating agency Fitch raised Indonesia's debt rating from "BB" to "BBB-" categorizing the country as investment grade which is good for long-term investment.          Chief economic minister Hatta Rajasa welcomed the raising of  Indonesia's debt rating to an investment grade by Fitch ratings agency saying it had boosted the government's confidence.         "Our optimism for 2012 is increasing because we initially thought  it would be achieved in 2012, not this year, so that the 2012 outlook will change, more confident, better as certain countries would use it as a reference for their investment," he said at his office here on Friday.          The investment coordinating board (BKPM)  has set a target of investment for 2012 at Rp283.5 trillion consisting of foreign investment worth Rp204.1 trillion and domestic investment worth Rp79.4 trillion.          In this case, BI Governor Darmin Nasution said that investment which in 2011 recorded a growth of 7.7 percent, was expected to experience an increased growth of about 9.7 - 10.1 percent in 2012 which in turn would maintain the people's purchasing power.          Kadin also expressed support to the government's investment target of Rp283.5 trillion in 2012 to reach a total investment of Rp2,600 trillion in the country next year.          On the country's investment target of Rp2,600 trillion to be reached up to 2012, Kadin Cchairman Suryo Bambang Sulisto said the figure would come from gross fixed capital formation or physical investment in the country which was expected to reach Rp2,300 trillion at the end of this year.      (T.A014/A/H-NG/11:30/A/O001) 29-12-2011 11:36:3