• Indonesia Needs +7% GDP Growth to Become High Income Country by 2030

    In order to avoid the middle-income trap and join the ranks of the high income countries by 2030 (reaching a per capita income level of at least USD $12,500), Indonesia needs to raise economic growth beyond the 7 percent year-on-year (y/y) level. If the current gross domestic product (GDP) growth rate is maintained (between 5 and 6 percent y/y) then it will take another decade to break from the middle income trap and become a high income country. However, GDP growth in 2014 is projected at a bleak 5.2 percent (y/y).

    Read column ›

  • Indonesia’s Quest for Energy Security: 25 Geothermal Projects Tendered

    The Indonesian government plans to tender 25 new geothermal development sites with a total combined capacity of 1,225 megawatt (MW). These 25 projects will require a total of USD $4.6 billion worth of investments and help to achieve the government’s target to raise the portion of geothermal energy in the country’s energy mix to 7.1 percent by 2025. These 25 projects are in addition to the 31 geothermal development projects that are currently being constructed and which should be operational by 2020.

    Read column ›

  • Indonesia Improves Slightly in the Corruption Perceptions Index 2014

    Berlin-based Transparency International released the 2014 edition of its Corruption Perceptions Index (CPI) earlier this week. In the new edition Indonesia was ranked 107th (out a total of 175 countries), up from 114th in the previous edition. As such, Indonesia continues to improve gradually through the ranks of the index. However, with a score of 34 (out of a possible - and perfect - score of 100) the country still lags behind its regional peers such as Singapore (84), Malaysia (52) and the Philippines (38).

    Read column ›

  • Fitch Ratings Keeps Indonesia’s Sovereign Rating at BBB-/Stable

    International credit rating agency Fitch Ratings maintained Indonesia’s sovereign rating at BBB-/stable outlook (investment grade). Baradita Katoppo, President Director of Indonesia’s Fitch Ratings branch, said that the firm is positive about the country’s financial fundamentals and prudent fiscal policy as the central bank has showed to prefer stability over growth, resulting in slowing credit growth and rising foreign exchange reserves in Southeast Asia’s largest economy. Economic growth is expected to fall to 5.1 percent (y/y) in 2014.

    Read column ›