World Bank confident of Indonesia despite pressures

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jakartaThe World Bank says Indonesia can cope with current economic pressures due to its strong economic fundamentals and fiscal policy, according to a statement released on November 8.

“Over the past decade, the world has seen Indonesia emerge as a dynamic middle-income country, thanks to its strong macro-economic fundamentals and prudent fiscal management. The World Bank is confident that Indonesia will overcome the current pressures affecting the rupiah and will remain resilient against external volatility,” said Rodrigo Chaves, newly appointed World Bank country director for Indonesia, The Jakarta Post reported.

Although resilient, economic growth in Indonesia is moderating, reflecting a dip in investment, in commodity prices, as well as in domestic consumption.

Indonesia’s current account deficit also continues to widen, with imports increasing at a faster pace than exports. But recent policy shifts, such as the reduction in fuel subsidies, are positive developments that will help Indonesia bounce back.

“Indonesia’s economy is adjusting to short-term uncertainty. But the country’s growth prospects are undisputed, particularly if long-term development plans and public policies boost investment on the expansion of labour skills and of infrastructure,” Chaves said.

Chaves leads a program in Indonesia that includes a portfolio of 37 active operations, with $8 billion of net commitments in lending as of August 2013, with programs ranging from support for community-driven development, to geothermal energy expansion and early childhood education services.

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Reading Time: 1 minute

The World Bank says Indonesia can cope with current economic pressures due to its strong economic fundamentals and fiscal policy, according to a statement released on November 8.

Reading Time: 1 minute

jakartaThe World Bank says Indonesia can cope with current economic pressures due to its strong economic fundamentals and fiscal policy, according to a statement released on November 8.

“Over the past decade, the world has seen Indonesia emerge as a dynamic middle-income country, thanks to its strong macro-economic fundamentals and prudent fiscal management. The World Bank is confident that Indonesia will overcome the current pressures affecting the rupiah and will remain resilient against external volatility,” said Rodrigo Chaves, newly appointed World Bank country director for Indonesia, The Jakarta Post reported.

Although resilient, economic growth in Indonesia is moderating, reflecting a dip in investment, in commodity prices, as well as in domestic consumption.

Indonesia’s current account deficit also continues to widen, with imports increasing at a faster pace than exports. But recent policy shifts, such as the reduction in fuel subsidies, are positive developments that will help Indonesia bounce back.

“Indonesia’s economy is adjusting to short-term uncertainty. But the country’s growth prospects are undisputed, particularly if long-term development plans and public policies boost investment on the expansion of labour skills and of infrastructure,” Chaves said.

Chaves leads a program in Indonesia that includes a portfolio of 37 active operations, with $8 billion of net commitments in lending as of August 2013, with programs ranging from support for community-driven development, to geothermal energy expansion and early childhood education services.

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