Survey of recent developments
The survey period was dominated by the presidential election and its immediate aftermath. After receiving a clear mandate from the Sept. 20 second-round election, on Oct. 20 Susilo Bambang Yudhoyono was installed as Indonesia's sixth president, and the first to be elected directly. The presiden...
Saved in:
Published in | Bulletin of Indonesian economic studies Vol. 40; no. 3; pp. 277 - 305 |
---|---|
Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Canberra
Carfax Publishing
01.12.2004
Taylor and Francis Journals Taylor & Francis LLC |
Series | Bulletin of Indonesian Economic Studies |
Subjects | |
Online Access | Get full text |
Cover
Loading…
Summary: | The survey period was dominated by the presidential election and its immediate aftermath. After receiving a clear mandate from the Sept. 20 second-round election, on Oct. 20 Susilo Bambang Yudhoyono was installed as Indonesia's sixth president, and the first to be elected directly. The president inherits an economy which, in terms of per capita income, has recovered to pre-crisis levels, and is growing at about 4.3% per annum. Developments during the survey period continued to confirm the assessments of previous surveys that macroeconomic stability has been restored, albeit precariously. Inflation is under control, though it is stubbornly above that of Indonesia's major trading partners. Interest rates have bottomed out and will probably start to rise, reflecting both international trends and the current very low real domestic rates. A major achievement of the Megawati administration was its prudent fiscal policy. The fiscal deficit has fallen to below 2% of GDP, and would be less than 1% under the proposed 2005 budget. However, the fuel subsidy has risen alarmingly. The subsidy is of such magnitude as to imperil the incoming administration's development-oriented expenditure program. The economy weathered the third major terrorist attack in two years, on Sept. 9 in front of the Australian embassy, with surprising ease. The longer-term ramifications may be more serious, however, especially if there are repeat attacks. |
---|---|
Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 ObjectType-Article-1 ObjectType-Feature-2 |
ISSN: | 0007-4918 1472-7234 |
DOI: | 10.1080/0007491042000231494 |