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View all search resultsFurther escalation in the Middle East conflict could pose multi-layered economic risks to Indonesia, ranging from further capital outflows to weaker gross domestic product (GDP) growth, according to analysts and some former government officials.
In the face of increasing global uncertainty and national economic and financial cycles below potential economic capacity, the BI policy mix will remain oriented toward maintaining stability and supporting sustainable economic growth.
Risk sentiment was fragile after Israeli forces clashed with gunmen from the Palestinian group Hamas over the weekend, hours after the militants launched a surprise attack on Israel in the deadliest day of violence in the country for 50 years.
The government's policy mandating exporters to repatriate their foreign exchange earnings needs to provide more attractive incentives and a more adequate time limit, so businesses find complying with it to be in their best interests.
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