In its latest East Asia and Pacific Economic Update, the World Bank is optimistic about Indonesia's recent economic performance as well as its future prospects. The country's FY-2017 gross domestic product (GDP) expanded at the fastest pace in four years, led by stronger investment and net exports. Meanwhile, its current account deficit narrowed to a six-year low, while the central government's budget deficit reached the lowest since 2014, on the back of stronger global trade and strengthening commodity prices.

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The World Bank released the December 2017 edition of its flagship publication "Indonesia Economic Quarterly" on Thursday (14/12). This latest edition, which is titled "Decentralization that delivers", paints a positive picture about Indonesia's economic growth and financial system stability for the year 2018 and beyond.

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According to the World Bank the economy of Indonesia will continue to accelerate in 2017 supported by strengthening global economic growth, overall rising commodity prices (meaning investment and export performance should improve), the nation's low current account deficit, low inflation, and strong fundamentals of the Indonesian economy. These circumstances should boost Indonesia's gross domestic product (GDP) growth to 5.2 percent year-on-year (y/y) in 2017 (from 5.0 percent in the preceding year).

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The World Bank released the January 2017 edition of its Indonesia Economic Quarterly (IEQ), titled "Sustaining Reform Momentum", on Tuesday (17/01). In this report the Washington-based institution says Indonesia’s reforms to fiscal policy and the investment climate are expected to boost the local economy. Therefore, the World Bank maintains its economic growth rate for Indonesia in 2017 at 5.3 percent (y/y). However, it also emphasizes that Indonesia - like the rest of the international community - is also plagued by uncertainty in global economic policy and global financial market volatility.

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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.

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When the United Kingdom (UK) decided to leave the European Union (the so-called Brexit) through a referendum that was held on 23 June 2016, global markets were in shock. While these markets and the UK economy have recovered from the shock (although the pound remains near a 30-year low and Britain lost its AAA rating implying that the cost of government borrowing becomes higher) there are still some concerns about the (negative) impact of Brexit on emerging market economies in Asia, including Indonesia.

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In its latest East Asia and Pacific Economic Update, titled "Reducing Vulnerabilities", the World Bank stated that it projects Indonesia's gross domestic product (GDP) to grow by 5.1 percent (y/y) in 2016 and 5.3 percent (y/y) in 2017 mainly supported by rising private consumption, a relatively stable rupiah rate, fiscal support (including higher personal income tax threshold), and accelerating government spending. Overall, the World Bank expects growth in developing East Asia and the Pacific to remain resilient over the next three years.

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The World Bank released the June 2016 edition of its Indonesia Economic Quarterly (IEQ) report on Monday (20/06). Recently, the Washington-based institution took a rigorous step by downgrading its 2016 global economic growth forecast from 2.9 percent (y/y) to 2.4 percent (y/y). This is a significant downgrade that was primarily due to the weak performance of commodity exporters. Despite this downgrade the World Bank still sees a resilient Indonesian economy, reflected by a GDP growth forecast of 5.1 percent (y/y) in 2016 and 5.3 percent (y/y) in 2017.

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In its March 2016 Indonesia Economic Quarterly, titled "Private Investment is Essential", the World Bank cut its forecast for Indonesia's economic growth in 2016 to 5.1 percent year-on-year (y/y) from an earlier estimate of 5.3 percent (y/y). This downward revision was made due to weaker-than-expected global economic conditions, further weakening commodity prices, and limitations to Indonesian government spending brought about by a looming shortfall in tax revenue.

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In its latest East Asia and Pacific Economic Update, released on Monday (05/10), the World Bank cut its forecast for economic growth in east Asian developing markets through 2017 primarily on China's economic slowdown. Developing East Asia is estimated to grow 6.5 percent in 2015, down from the 6.7 percent estimate in the World Bank April's update. However, the region remains one the world's key growth drivers.

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In the second half of September 2018 the World Bank released its latest Indonesia Economic Quarterly (abbreviated IEQ), titled “Urbanization for All”. The IEQ, a flagship publication of the Washington-based institution which (at least in our view) is among the most interesting reports that are on a regular basis published about the Indonesian economy, has two main aims. Firstly, it informs about the key developments that occurred in Indonesia’s economy over the past three months, and places these developments in a longer-term and global context. Secondly, the IEQ provides an in-depth examination of selected economic and policy issues and an analysis of Indonesia’s medium-term development challenges.

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In the April 2018 edition of its East Asia and Pacific Economic Update, the World Bank is cautiously optimistic about economic growth in developing East Asia and Pacific (EAP). After a better-than-expected global economy in 2017, growth in developing EAP is expected to remain stable in 2018, reflected by solid prospects in Thailand and several commodity exporters, notably Indonesia. Domestic demand is estimated to remain robust in most of the region's economies and continue to underpin growth in 2018 and beyond. However, with economies operating close to their potential, price pressures are expected to rise.

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The World Bank released the latest edition of its flagship publication Indonesia Economic Quarterly on Tuesday (27/03). The March 2018 edition of the report is entitled "Towards Inclusive Growth". In the report the World Bank is positive about Indonesia's economic outlook after seeing the nation's real gross domestic product (GDP) growth picking up at 5.2 percent year-on-year (y/y) in the fourth quarter of 2017 (accelerating from 5.1 percent y/y in the previous quarter).

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In the World Bank's January 2018 edition of its Global Economic Prospect (GEP) report, released earlier this week, Indonesia's economic growth is considered stable at 5.3 percent year-on-year (y/y) in the 2018-2020 period. Although compared to emerging peers in the Asian region, a 5.3 percent growth pace is not too impressive, the positive message from the GEP report is that - contrary to many emerging Asian peers - Indonesia is not expected to see sliding economic growth in the years ahead.

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A new World Bank report, entitled "Indonesia's Global Workers: Juggling Opportunities & Risks", discusses the attractive opportunities for Indonesian workers to decide to migrate and work abroad. However, the report also notes that it is important for Indonesian authorities to reform its labor migration system to allow those Indonesians who want to work abroad can access better paid jobs, while their protection can be improved.

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In its latest report, the World Bank stated that Indonesia's macroeconomic fundamentals are solid and have been strengthening amid the central government's eagerness to implement critical structural reforms, while investment growth rose to the highest levels since the last quarter of 2015 (mainly investment in buildings and structures).

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The latest World Bank projection shows the economy of Indonesia remains promising despite the Washington-based institution having lowered its forecast for Indonesia's full-year 2017 gross domestic product (GDP) growth by 0.1 percentage point to 5.2 percent year-on-year (y/y) in the June 2017 edition of its Global Economic Prospect. The World Bank emphasized the Indonesian economy remains relatively strong and is among the most promising emerging markets.

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Indonesia climbed 15 places in the World Bank's Ease of Doing Business index 2017 from 106 to 91, hence being among the ten biggest climbers. Overall, the World Bank saw a record 137 economies around the globe adopting key reforms that make it easier to start and operate small and medium-sized businesses. The World Bank released its latest index, titled “Doing Business 2017: Equal Opportunity for All” on Wednesday (26/10).

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In the October 2016 edition of its flagship Indonesia Economic Quarterly (IEQ) report, titled "Easing Pressures", the World Bank is positive about Indonesia's improved fiscal management and its impact on the nation's gross domestic product (GDP) growth. The Washington-based institution projects Indonesia's economic expansion at 5.1 percent (y/y) in 2016. However, it emphasizes that external risks (sluggish global economic growth and global market volatility) continue to pose a threat.

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A new financial management system was launched in April 2015 by the Indonesian government. This new system, called Sistem Perbendaharaan dan Anggaran Negara (abbreviated SPAN), aims to enhance public efficiency, transparency and accountability in Indonesia by managing the financial transactions of more than 24,000 government spending units in all 33 provinces. According to a new World Bank story, Indonesia's new financial system has managed to improve efficiency, transparency and accountability. Moreover, it improves budget planning and spending.

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