Indonesia’s growth remains strong despite external headwinds. Inflation is firmly in the target range and the financial sector is resilient. The authorities have been pursuing an ambitious growth agenda to reach high-income status by 2045. This comprises public spending, institutional reforms, and Industrial Policy (IP). Risks are broadly balanced. Key downside risks include persistent commodity price volatility (e.g., from geopolitical shocks), an abrupt slowdown in Indonesia’s key trading partners, or adverse spillovers from tighter-for-longer global financial conditions. On the domestic side, a weakening of long-standing sound macro-fiscal frameworks could hamper policy credibility. On the upside, stronger-than-anticipated growth in trading partners or faster disinflation in AEs could prop up growth while deep structural reforms would raise growth over the medium term.
- Format
- Paper
- Frequency
- regular
- ISBN
- 9798400284588
- ISSN
- 1934-7685
- Pages
- 135
- Published in
- United States of America
- Series
- Country Report No. 2024/270
- StockNumber
- 1IDNEA2024001
Table of Contents
- Indonesia - 2024 Article IV - BUNDLE - Staff Report 5
- Main Policy Recommendations 5
- context: balancing growth and stability 9
- Recent Developments: resilient growth and Prudent policies amid global uncertainties 10
- robust outlook amid balanced risks 13
- policies: SAFE transit to The Golden vision 15
- A. Fiscal Policy: Lifting Potential Growth while Protecting Credibility 15
- B. Monetary Policy: Securing Price Stability 21
- C. Financial Sector Policies: Preserving Stability and Supporting Growth 24
- D. Policies to Manage Near- and Medium-Term Risks 27
- E. Achieving High Income: A Structural Reform Program 28
- STAFF APPRAISAL 35
- Model-Based Analysis 109
- Slowdown in the Foreign Economy 110
- Fiscal and Monetary Policy Shocks in the Foreign Economy 112
- Concluding Remarks 113
- Indonesia - 2024 Article IV - BUNDLE - Informational Annex - Sup 1 SM24195 126
- Fund Relations 127
- Relations with Other International Financial Institutions 129
- Indonesia - 2024 Article IV - BUNDLE - ED Statement - BUFFED24110 - Formatted 130
- Outlook 130
- Fiscal Policy 131
- Fiscal policy conservatism, prudent and effective financing strategies, as well as automatic adjustment mechanisms, have provided adequate fiscal space in response to recent uncertainties and adverse shocks without compromising fiscal sustainability. ... 131
- Monetary Policy 131
- Financial Sector Policies 132
- Structural Reforms 134
- PR24303 - Indonesia - IMF Executive Board Concludes 2024 Article IV Consultation with Indonesia.pdf 1
- FOR IMMEDIATE RELEASE 2
