The global economy is still fragile in 2014 as can be seen in the downgrade of expected global economic growth from 3.8 percent to 3.5 percent. Moreover, prices of commodities (a vital asset of Indonesia's exports) are expected to stay rather weak next year. Meanwhile, interest rates will stay high and the rupiah is expected to continue its weakening trend until the beginning of 2014. The finance minster stated that one of the most important tasks now is to push inflation back to a normal level (about 4.5 percent) in order to safeguard people's purchasing power. In July, inflation reached 8.61 percent year-on-year.

     State Budget
     Draft 2014
GDP Growth
annual percent change
           6.4
Inflation
annual percent change
           4.5
Exchange Rate
IDR/USD
         9,750
Treasury Bills Interest Rate
3-month, percent
           5.5
Indonesian Crude Oil
USD $ per barrel
          106
Oil Lifting
thousand barrels per day
          870
Natural Gas Lifting
barrel of oil equivalent/day
         1,240 

Source: Investor Daily

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