The about english economy of indonesia From Ulfa
Indonesia is a country that contains great economic potential; a potential that has not gone unnoticed to part of the global community. Indonesia contains a number of characteristics that put the country in a great position for newly advanced economic development.
Moreover, in recent years there is strong support from the central government to curb Indonesia's traditional reliance on commodity exports, while raising the role of the manufacturing industry within the economy. Infrastructure development is also a key goal of the government, and one that should cause a multiplier effect within the economy.
one of International recognition regarding Indonesia's economy are the recent upgrades of the country's credit ratings by international financial services companies.
Resilient economic growth, low government debt and prudent fiscal management have been cited as reasons for the upgrades and are key in attracting financial inflows into Indonesia.
Although Indonesia is eager to reduce its traditional reliance on raw commodity exports and boost the manufacturing industry, it is a difficult path particularly because the private sector remains hesitant to invest.
This transformation is important because falling commodity prices has impacted drastically on Indonesia. Indonesia's export performance weakened significantly, implying fewer foreign exchange earnings and reduced purchasing power, hence causing an economic slowdown.
The Indonesian government under the leadership of Joko Widodo, Indonesia's seventh president, has implemented several structural reforms that aim at long-term growth but cause some short-term pain. For example, the majority of fuel subsidies have been scrapped successfully, a remarkable accomplishment (as fuel subsidy cuts have always caused outrage among the population) aided by the globe's low crude oil prices. Moreover, the government places high priority on infrastructure development and on investment.
There are signs that Indonesia's economic growth is starting to accelerate again after the economic slowdown in the years 2011-2015 (twenty and eleven- until- twenty and fiftin) . As such we may be at the beginning of what can become another period of substantial economic growth. However, it should also be pointed out that Indonesia is a complex country that contains certain risks for investments and experiences difficulties due to the nation's unique dynamics and context. In order to be aware of the risks involved we advise you to know our Risks of Investing in Indonesia and to keep track of Indonesia's latest economic, political and social developments through our News, Business and Finance.
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