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Jakarta Post

World Bank warns RI of potential China slowdown

  • The Jakarta Post

Jakarta   /   Tue, October 16 2012   /  09:37 am

The World Bank says Indonesia’s economy will remain resilient against threats posed by stalling economic recovery in the US and Europe, but warned policymakers in the country to monitor economic developments in China, the potential economic slowdown of which could have more “negative spillover” effects for the archipelago.

A 1 percent economic slowdown in China may decelerate Indonesia’s economic expansion by up to a half a percent, the Washington-based institution noted in its October report released on Monday, titled “Indonesia Economic Quarterly: Maintaining Resilience”.

The report forecasts that Indonesia’s economy will expand to 6.1 percent this year and 6.3 percent next year, but warned the country over “downside external risks”, especially those stemming from China’s economy, which could push down Indonesia’s growth to just below 5 percent in 2...