This paper presents key findings of the Financial Sector Assessment Program for Indonesia. The program covers Bank Indonesia’s real-time gross settlement (BI-RTGS) system’s observance of the Committee on Payment and Settlement Systems (CPSS) core principles for systemically important payment...

This paper discusses key findings of the Financial Sector Assessment Program (FSAP) covering the transparency of monetary policy in the Republic of Indonesia. There is a reasonably high degree of transparency in Indonesia’s monetary policy, with much progress having been made over the last...

This paper discusses implementation of the International Organization of Securities Commissions (IOSCO) objectives and principles of securities regulation in Indonesia. The Capital Markets and Financial Institutions Supervisory Agency (BAPEPAM-LK) has taken impressive steps to increase the...

Staff Report for the 2012 Article IV consultation, prepared by a staff team of the IMF, following discussions that ended on July 6, 2012, with the officials of Indonesia on economic developments and policies. Based on information available at the time of these discussions, the staff report was...

This selected issues paper on Indonesia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on August 21, 2012. The views expressed...

This paper presents a small macro simulation model of the Indonesian economy The model was constructed to assess the effects of alternative policies as well as changes in the external environment on the Indonesian economy over the medium term Accordingly, the focus is on the determinants of...

This paper examines issues in sequencing and pacing capital account liberalization and draws lessons from experience in four countries (Chile, Indonesia, Korea, and Thailand). The paper focuses on the interrelationship between capital account liberalization, domestic financial sector reforms,...

This paper studies why currency and monetary shock hit Indonesia''s economy and banking sector so severely and the measures that were taken to deal with the banking crisis, the lessons learned, and challenges faced in restructuring and strengthening the banking system. The vulnerable state of...

This paper investigates whether Indonesia’s recent currency crisis was due to domestic fundamentals, common external shocks (“monsoons”), or contagion from neighboring countries. Markov-switching models attribute speculative pressure on Indonesia’s currency to domestic political and...

Following the 1997-98 financial turmoil, crisis countries in Asia moved toward either floating or fixed exchange rate systems, reinforcing the bipolar view of exchange rate regimes and the ""hollow middle"" hypothesis. But some academics have claimed that the crisis countries'' policies have...