Indonesian Economy 3rd Quarter 2008
Still High, Positive Signals

The national economy is not as lethargic as many people think. Although lower than the second quarter, Indonesia's economic growth in the third quarter is relatively high at 6.1 percent. In the next few months there will be positive signals. Declining commodity prices are relaxing pressures on inflation. Bank Indonesia may lower interest rates starting the beginning of the next year. The business world and consumption sector may still grow. As such, economic growth is estimated to remain high. But the government must be prudent. Non-performing loans in the plantation sector have the potential to increase.

December 9, 2008

Commodity Price Collapse Bounty

THE third quarter economic growth slowdown is not as bad as many had estimated. The effects of the previous quarter's fuel price increase, predicted to push inflation up, are subsiding, triggered by world oil and foodstuff prices' nose-diving. Since then, prices have been manageable. People are spending more. Trust in the government's ability to improve the situation is slowly returning. Business circles are optimistic

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