President Joko Widodo and Prime Minister Lee Hsien Loong unlocked more cooperation after implementing strategic agreements on the realignment of flight information region, extradition, and military training area usage.
The Indonesian government needs an investment realization of Rp 7,417 trillion to support next year's economic growth target. The largest support is expected from the private sector.
Finance Minister Sri Mulyani criticizes the high borrowing costs from the World Bank as Indonesia finds itself increasingly burdened by external debt amid the global economic turmoil.
The Tax Regulation Harmonization Law opens up the possibility of delaying the implementation of the VAT increase, but will the parliament and government use it?
The government estimates a balance of payment surplus of US$2.5 - 6.8 billion next year, with the current account deficit rising to US$2.7 - 3.9 billion, doubling or tripling 2023's figures.
Moody's projects that Indonesia's average economic growth in 2024-2025 will remain at its pre-pandemic level of around 5 percent. This average is higher than that of other Baa-rated countries, at 3.0 percent.
With renewed inflationary pressures on the horizon, the prolonged high-interest-rate regime is expected to persist, sparking concerns about its ramifications on global demand and industrial performance.
The government and Bank Indonesia are devising strategies to prevent further rupiah depreciation, including expanding currency swap agreements with countries that supply raw materials for domestic industry.
