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Jakarta Post

Ensuring stability, growth amid rising external risks

  • Hoe Ee Khor

    -

Singapore   /   Wed, October 10, 2018   /  09:07 am
Ensuring stability, growth amid rising external risks The central government has decided to put some infrastructure projects on hold as the rupiah’s depreciation continues. (The Jakarta Post/Jerry Adiguna )

Indonesia’s economic fundamentals remain robust with growth projected to continue picking up in 2018, according to the “2018 Annual Consultation Report on Indonesia” published by the ASEAN+3 Macroeconomic Research Office (AMRO) on Tuesday. 

Real gross domestic product (GDP) growth is projected to pick up to 5.2 percent in 2018 with continued support from infrastructure investment and strengthened consumption. Inflation is expected to remain within the target band of 3.5 ± 1 percent, as the impact of rising global oil prices would be mitigated by the authorities’ measures to control inflation.

The external position came under pressure in the first half of 2018 amid capital outflows that reflected investors’ risk aversion towards emerging markets. To reduce excessive volatility in the rupiah exchange rate, Bank Indones...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.