• Indonesia's Inflation Trend in February 2014: Easing or Accelerating?

    Statistics Indonesia (BPS) is optimistic that Indonesia's inflation rate in February 2014 can be curbed below the one percent mark. BPS official Sasmito Hadi Wibowo said that inflationary pressures are easing as floods have gone, while the LPG price moderated from last month. Prices of chicken meat and rice have remained stable but the price of chili is still growing slightly. In January 2014, severe floods caused 1.07 percent (month-to-month) of inflation due to disrupted distribution networks.

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  • Tourism in Indonesia is Growing but Infrastructure Investments Needed

    In 2013 Indonesia managed to attract a record number of foreign tourists. Around 8.8 million foreigners entered Indonesia - mostly in Bali - last year, a 9.42 percent increase from 2012, and earning up to USD $10.05 billion in foreign exchange (up 10.23 percent from 2012). Indonesia's tourism sector thus grew at a faster pace in 2013 than the general economy (5.78 percent) and now accounts for 3.8 percent (IDR 347.35 trillion) of the country's gross domestic product (GDP). However, this is still a low figure compared to its regional peers.

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  • Central Bank Survey Indicates Rising Consumer Confidence in Indonesia

    Indonesians' consumer confidence has increased in January 2014 according to the latest survey conducted by Indonesia's central bank (Bank Indonesia). The outcome of the survey indicated a rise of Indonesia's Consumer Confidence Index (CCI) from 116.5 in December 2013 to 116.7 in January 2014¹. This index illustrates consumer perceptions of current economic conditions compared to conditions in the previous six months as well as the expectations of Indonesian consumers for economic conditions in the next six months.

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  • Bappenas More Optimistic about Indonesia's Economic Growth in 2014

    Indonesia's Ministry of National Development Planning (Bappenas) is optimistic that economic expansion in Southeast Asia's largest economy will exceed the 6 percent mark in 2014, thus outpacing growth last year which reached 5.78 percent (yoy). According to Minister Armida S Alisjahbana, two factors will contribute positively to Indonesia's GDP growth in 2014. These are the legislative and presidential elections (scheduled for April and July 2014) as well as the improvement of Indonesia's trade balance.

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