Destry Damayanti News
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Indonesia’s economy grew at the slowest pace in more than two years last quarter as slower exports and government spending countered gains in consumption and investment.
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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.
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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.
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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.
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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.
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Indonesian foreign-exchange reserves will probably plunge the most since at least the Asian financial crisis this quarter, putting pressure on President Susilo Bambang Yudhoyono to cut fuel subsidies and curb imports.
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Indonesia’s inflation rate rose less than expected in May on year, an increase that may not be enough to prompt the central bank to raise interest rates this week.
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Bank Indonesia may unveil further measures to ease volatility in the rupiah and may announce next week new rules on bank ownership, a central bank official said.
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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.
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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.
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