INDONESIAN ECONOMYSECOND QUARTER 2009
Opportunities Before Normalization
Tuesday, September 1, 2009
THE turning point for the Indonesian economy was back in March. Now is the time for Indonesia to boost the economy so it can move quicker in this year's second quarter. Unfortunately, two of the dependable sectors-manufacturing, also trade, hotels & restaurants-are still running at half-speed. Support from banks has not materialized. Interest rates still have not dropped significantly, even though the Bank Indonesia reference interest rate is already at the base.
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A Burdensome Expansion
Continued reductions in inflation and interest rates have triggered a recovery in consumer confidence. As a result, household consumption-one of the largest contributors to growth-is secured. During the second quarter of this year, the Indonesian economy continued growing. Businessmen are convinced that in the future business will make them much more money. Several indicator indices have set records. The lowest point has be
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