World Bank: Indonesia's Economic Rise in 2009

The World Bank estimates that Indonesia's economy rose 4.3 percent this year, and will again rise gradually to 5.4 percent in 2010. This was driven by strong domestic consumption in Indonesia during the election campaign and also supported by increased trade performance. Based on the article Indonesian Economic Development Quarterly edition Tuesday (15 / 9), government spending will support the economy through the end of the year.

"Indonesian domestic market is big, strong economy as the crisis entered, and timely stimulus from the government and BI have to save Indonesia from this global financial crisis," said Joachim von Amsberg, World Bank Country Director for Indonesia. He added that all these factors supporting Indonesia to overcome the crisis in the storm better position than neighboring countries.

Quarterly Economic Development of Indonesia: Light Terbitlah Indonesia reported recovery coincided with the restoration of the external environment. Most of Indonesia's main export destination has been out of the recession in the mid-year, while the international price of Indonesian exports have also recovered from the decline that occurred in late 2008. In addition, Quarter Growth also explained:

1. Banking sector is stronger than many commentators expected.
2. Financial markets continued to strengthen throughout the mid-2009.
3. Indonesia external position remains strong.
4. Inflation to its lowest in August.
5. Employment increased more than the working age population.
6. Public finances more stimulus.
7. Realization of the budget deficit is likely to be smaller than the initial budget.

"We expect a gradual recovery trend in the mid 2009 continued in the next one and a half years. In 2010, investor confidence began to recover," said World Bank Senior Economist, Shubbam Chaudhuri.

The World Bank indicated inflation would rise gradually in coming months to 4.7 percent this year and 5.6 percent next year. Developments in various sectors and also the end of Direct Cash Assistance program is likely to slow the government's poverty reduction. Although the light began to appear in the sky Indonesia, there remains a dark cloud on the horizon, especially from the global economy.

source :
Willy Haryono
16/09/2009 22:39
Liputan6.com, Jakarta