This paper discusses key issues related to the Indonesian economy. Indonesia has weathered challenging economic conditions well. The economy has safely navigated the commodity price shocks, tightening financial conditions, and repeated bouts of turbulence in global financial markets, assisted by...

This paper focuses on the selected issues of the Indonesian economy: (1) banking sector condition in India, (2) corporate vulnerabilities, (3) analysis of macrofinancial linkages in Indonesia, and (4) infrastructure development in Indonesia. Overall, the banking sector appears well capitalized...

This Selected Issues paper provides an overview of the exchange rate and trade dynamics in Indonesia. Using data on monthly export and import price and volume at the sectoral level, the paper estimates pass-through effects of exchange rate changes to trade price and volume. Results indicate...

This 2019 Article IV Consultation discusses that the Indonesian economy performed well in 2018, despite external headwinds, including capital flow reversals. Growth stabilized above 5 percent and inflation eased to around 3 percent. A surge in imports and weak export growth contributed to a...

This 2016 Article IV Consultation highlights that Indonesia has maintained macroeconomic stability, while adjusting well to recent shifts in the external environment. A prudent mix of macroeconomic policies and the launch of structural reforms have helped the economy weather slow global growth,...

This Selected Issues paper analyzes the capital inflows to Indonesia since the global financial crisis. Capital inflows to Indonesia have increased since the crisis. Their average volume increased from 3.25 percent of GDP in 2005-09 to 4.50 percent of GDP in the first quarter of 2010 to the...

This 2017 Article IV Consultation highlights that the Indonesian economy has continued to perform well. The economic outlook is positive. Real GDP growth is projected at 5.1 percent in 2017, rising gradually to 5.6 percent over the medium term, led by robust domestic demand. Inflation is...

This Selected Issues paper focuses on various challenges and opportunities related to reaping Indonesia's demographic dividend. Demographic trends can impact growth through various channels. These include the size of the labor force, productivity, and capital formation. Indonesia's growth is set...

This paper reviews observance of Insurance Core Principles in Indonesia. Insurance regulation and supervision have been remarkably improved since the establishment of the Financial Services Authority (OJK) and the enactment of the new Insurance Law. However, the assessment has identified a...

As part of the Switzerland State Secretariat for Economic Affairs (SECO) project, a technical assistance mission visited Jakarta, Indonesia, during January 8-12, 2018, to develop the capacity to compile integrated sectoral accounts and balance sheets data. The mission reviewed the results of the...