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Saturday, November 16, 2013

Economist : Indonesia to Face Threat of overheating

Economist : Indonesia to Face Threat of overheating


 University of Indonesia economist Telisa Aulia Falianty reveals Indonesia's macroeconomic conditions facing the threat of " overheating " or heat , although still within the moderate level .

" Our research in 2013 showed a tendency to increase in the overheating index , " he said in the discussion mix Indonesian Macroeconomic Policy for Dealing with Global Economic Turmoil in Jakarta on Saturday .

He said the World Bank study of the Indonesian economy in 2014 will be better in part because there will be elections , turn out to be lower than 2013.

For example , the projected economic growth in 2013 is estimated at 5.6 percent , and in 2014 is expected to be lower , reaching 5.3 percent .

Investment growth in 2013 estimated 5.3 percent , only 4.9 percent for 2014 .

While exports in 2013 are projected to grow 5.6 percent and is expected to grow 5.7 percent in 2014 .

However , the growth of imports greater the estimated 2.4 percent in 2013 and 2014 to reach 4.5 percent .

According to the Chairman of the Masters Program in Public Policy Planning and FE - UI , the Indonesian economy faces structural problems that fetter the balance of payments .

Indonesia is able to maintain internal equilibrium , but began experiencing external imbalances .

External imbalance that comes from problems in the food sector , energy , low competitiveness of energy , dependence on commodity exports , and dependence on imported raw materials and capital goods .

According to him , the economic component of the experience " overheating " and worrying is the current account deficit , which is too high credit growth , and volatility in the exchange rate .

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