Indonesia’s two presidential candidates offered differing paths to generating growth and government revenue, as their pledges to improve incomes, health care and education confront the reality of budget constraints.
Indonesian lawmakers will assess candidates to become the central bank’s deputy governor for monetary operations today, seeking to fill a post that has been vacant since 2011 as the nation grapples with a falling currency.
Five years ago, property agent Daisul Akhyar took 20 minutes to drive to work in Pekanbaru, capital of Indonesia’s Riau province. Now, he can spend two hours in traffic after a surge in wealth transformed the city.
Indonesia may still need to raise fuel prices to reduce the government’s energy budget, supplementing plans to restrict the use of subsidized oil as early as June, according to the country’s fiscal chief.
Indonesia will ease foreign ownership restrictions in airport and power projects to lure capital as the nation grapples with a current-account deficit that’s sending the rupiah to its worst yearly drop since 2000.
Indonesia’s two-year bonds advanced, with the yield dropping by the most this year, amid speculation investors are favoring short-term notes on concern a plan to adjust fuel subsidies will spur inflation. The rupiah fell.
Indonesia’s growth may accelerate to the fastest pace since before the Asian financial crisis next year on investment and infrastructure spending, even as the faltering global economy may cause expansion to miss a government target, according to the vice finance minister.
Indonesia’s inflation accelerated to a 13-month high in October as Asia’s worst performing currency this year boosted the cost of imports, reducing the scope for interest-rate cuts to counter falling exports.