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Today's Headlines World Bank

  • World Bank: Indonesia Quarterly Report "Slower Growth; High Risks"

    The World Bank released the December edition of its Indonesia economic quarterly report. The title of the report “Slower Growth; High Risks” leaves little to the imagination. The World Bank expects Indonesia’s economic growth to slow to 5.3 percent in 2014 amid external shocks, most notably the Federal Reserve 'tapering'. The report states that “while policymakers in Indonesia have taken steps to encourage near-term macroeconomic stability, further structural reforms are needed to support export performance and encourage long-term faster growth.”

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  • Indonesia's Economic Growth in 2014: Growing or Slowing?

    Despite the World Bank and International Monetary Fund (IMF) having revised down their forecasts for Indonesia's economic growth in 2014, the Center for Economic and Public Policy Studies (Pusat Studi Ekonomi dan Kebijakan Publik) expects that the country's economy will grow stronger in 2014 than this year. In 2014, the World Bank and IMF expect Indonesia's gross domestic product to grow 5.4 percent and 5.5 percent respectively. Both estimates are 0.2 percent down from their GDP growth forecasts for the year 2013.

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  • World Bank: Indonesia Improves in the 'Doing Business 2014' Ranking

    On Friday (25/10), the World Bank released its 'Doing Business 2014' report in which it "ranks countries on their overall 'ease of doing business', and analyzes reforms to business regulation - identifying which economies are strengthening their business environment the most." In total 189 countries were analyzed. Indonesia, traditionally characterized by a complex and difficult investment environment, managed to climb 8 places in the ranking. Southeast Asia’s largest economy rose from number 128 to 120 in the 2014 edition.

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  • Bank Indonesia: Indonesia's October Inflation Likely to Fall Below 0.26%

    Perry Warjiyo, Deputy Governor of Indonesia's Central Bank (Bank Indonesia), expects that the inflation rate in October 2013 will fall below 0.26 percent (which is the average October inflation rate since 2007). Warjiyo said that a survey of Bank Indonesia indicated that up to the third week of October, inflation had only reached 0.06 percent. Low inflation - or preferably deflation - is needed to curb Indonesia's current high inflation rate. In September 2013, annual inflation was recorded at 8.40 percent.

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  • World Bank: Indonesia's Resilience Tested, Adjustment Continues

    Indonesia’s economy continues to adjust, as weaker commodity prices, tighter international financing, and slowing domestic demand moderate the growth rate to 5.6 percent for 2013. This downward revision is discussed in the latest edition of the World Bank’s Indonesia Economic Quarterly (IEQ). Further moderation of growth (at 5.3 percent) may be expected in 2014, with growth in high income economies firming but international market conditions likely remaining volatile.

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  • Optimizing Indonesia's Economic Potential: Early Childhood Education

    In the past decade Indonesia experienced economic growth, reduced poverty, and continued progress towards many of the Millennium Development Goals (MDGs). However, for the poor families in Indonesia, national economic improvements have brought only modest gains in both health and education. Poverty and the lack of related opportunities continue to challenge the development, school readiness, as well as educational progress of many Indonesian children, according to the World Bank.

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  • Morgan Stanley: Indonesia's Securities Vulnerable to Capital Outflows

    After the World Bank signaled slowing economic growth in Indonesia, American multinational financial services corporation Morgan Stanley also detects problems in Southeast Asia's largest economy. According to Jonathan Garner, chief Asia and emerging-market strategist for Morgan Stanley, Indonesia’s stock market is the most vulnerable stock market in Southeast Asia in terms of sudden capital outflows. Morgan Stanley downgraded Indonesia's equities to underweight from equal weight and labeled the country as "a relatively over-owned country".

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  • Indonesia Economic Quarterly World Bank Report: Adjusting to Pressures

    On 2 July 2013, the World Bank released its July edition of the Indonesia Economic Quarterly. The report, titled Adjusting to Pressures, touches on the key developments over the past three months in Indonesia’s economy and places these in a longer term and global context. It regularly updates the outlook for the country’s economy and social welfare, and provides a more in-depth examination of selected economic and policy topics, as well as analyses of medium term development challenges.

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  • Indonesia's Cement Sales Indicate Country's Slowing Economic Growth

    Cement sales in Indonesia between January and May 2013 rose 6.9 percent to 23 million tons (year on year). In the month May alone, cement sales rose by 2.1 percent (to 4.7 million tons), one of the lowest monthly growth rates seen in the last years. Between January and April 2013, cement consumption had still grown at a pace of 8.6 percent (YoY). These numbers thus seem to indicate that Indonesia's economic growth is slowing down as cement sales reveal the state and pace of infrastructure and real estate projects.

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  • Unemployment in Indonesia Declines Steadily According to Latest BPS Data

    According to data from Statistics Indonesia (BPS) that was published yesterday, Indonesia's unemployment rate has fallen to 5.92 percent in February 2013 from 6.14 percent in August 2012. BPS, a government agency, always takes the months February and August as bases to release its (un)employment figures. From August 2012 to February 2013 about 3.1 million Indonesians were added to Indonesia's labor force. This means that the country's current labor force numbers 121.2 million people (out a total population of 240 million).

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Latest Columns World Bank

  • A Look Back at the IMF-World Bank Annual Meetings on Bali

    A Look Back at the IMF-World Bank Annual Meetings on Bali

    After having successfully hosted the 2018 Asian Games last September, Indonesia hosted the 2018 Annual Meetings of the International Monetary Fund (IMF) and World Bank Group on Bali on 8-14 October. Every year, the IMF and World Bank organize these meetings to discuss the latest financial and economic developments that occurred across the globe, while also poverty eradication and other key global issues – such as protectionism and climate change - are placed high on the agenda. The main themes of this year’s meetings include digital development and investing in human capital, which resulted in the “Bali Fintech Agenda” as well as the launch of “Human Capital Index”.

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  • A Quick look at the World Bank’s Latest Indonesia Economic Quarterly

    A Quick look at the World Bank’s Latest Indonesia Economic Quarterly

    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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  • World Bank Puts Economic Growth Projection Indonesia at 5.2% in 2018

    World Bank Puts Economic Growth Projection Indonesia at 5.2% in 2018

    The World Bank revised down its economic growth projection for Indonesia from 5.3 percent year-on-year (y/y) to 5.2 percent (y/y) for full-year 2018 amid the complex external environment: tightening monetary conditions, a potential global trade war, financial volatility, and geopolitical concerns. Such external factors put pressure on Indonesia's export performance, hence on domestic economic growth.

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  • World Bank Keeps Favorable Growth Outlook for East Asia & Pacific

    World Bank Keeps Favorable Growth Outlook for East Asia & Pacific

    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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  • World Bank Released March 2018 Indonesia Economic Quarterly

    World Bank Released March 2018 Indonesia Economic Quarterly

    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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  • World Bank Positive about Economic Growth Indonesia in 2018

    World Bank Positive about Economic Growth Indonesia in 2018

    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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  • World Bank Report on Indonesian Migrant Workers

    World Bank Report on Indonesian Migrant Workers

    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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  • World Bank's Doing Business 2018: Indonesia Climbs in Ranking

    World Bank's Doing Business 2018: Indonesia Climbs in Ranking

    Indonesia continued to climb sharply in the World Bank's Doing Business Index. In the 2018 edition, which was released at the end of October 2017, Indonesia ranks 72nd, jumping 19 positions from being 91st in last year's ranking. The World Bank praised Indonesia and labelled it as the country that made the biggest improvements in business regulations among Asia Pacific nations since 2005.

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  • World Bank Releases October Indonesia Economic Quarterly Report

    World Bank Releases October Indonesia Economic Quarterly Report

    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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  • World Bank Remains Optimistic about the Indonesian Economy

    World Bank Remains Optimistic about the Indonesian Economy

    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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