Rising private sector investment and strengthening commodity prices are the correct ingredients that can trigger accelerated economic growth in several Southeast Asian nations in 2017. In a report entitled "Global Economic Prospects: Weak Investment in Uncertain Times", which was released on Tuesday (10/01), the World Bank set its forecast for Indonesia's economic growth at 5.3 percent year-on-year (y/y) in 2017, followed by a 5.5 percent (y/y) growth rate in both 2018 and 2019, up from an estimated growth rate of 5.1 percent (y/y) in 2016.

Lanjut baca ›

Income distribution inequality is a problem in Indonesia, one that can jeopardize social, political and economic cohesion in Southeast Asia's largest economy. When looking at the Gini ratio, which is the coefficient that measures the degree of inequality in income distribution, we see a sharp rise in income inequality in Indonesia in the post-Suharto era. Thus, democracy and decentralization created an environment that allowed for rising inequality. While in the 1990s Indonesia's Gini ratio stood at an average of 0.30, it rose to an average of 0.39 in the 2000s, and remained stable at 0.41 in the years 2011-2015 before easing slightly to 0.40 in 2016.

Lanjut baca ›

Based on the latest data from the Indonesian Oil Palm Estate Fund (BPDP-KS), Indonesia exported 25.7 million tons of crude palm oil (CPO) in full-year 2016, a 1.9 percent year-on-year (y/y) decline from 26.2 million tons of CPO shipments in the preceding year. However, in terms of value Indonesia's CPO exports actually surged 8 percent (y/y) to USD $17.8 billion in 2016. Indonesia is the world's largest exporter and producer of palm oil, followed by Malaysia.

Lanjut baca ›

The central bank of Indonesia (Bank Indonesia) announced that the nation's foreign exchange reserves climbed to USD $116.4 billion at the end of December 2016, up from USD $111.5 billion one month earlier. Growth was attributed to foreign exchange receipts, primarily stemming from the issuance of government global bonds debt securities, the withdrawal of government foreign loans, tax revenues and oil & gas export proceeds, that all surpassed the use of foreign exchange for government external debt repayments and Bank Indonesia's maturing foreign exchange bills.

Lanjut baca ›