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’s policy makers delivered the country’s first benchmark interest-rate increase since 2011 and first fuel-price boost in five years in June. Capital outflows since then have spurred pressure for further moves.
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.