Economy of Indonesia Essay

1954 WordsMay 24, 20148 Pages
Indonesia During the global financial crisis, Indonesia was one of the best performing economies in the world, and the only G20 economy to lower its public debt-to-GDP ratio in 2009. Growth is expected to remain strong ever since the recovery from the crisis. The raising of reserve requirements by Bank of Indonesia’s is a step in the correct direction. Indonesia’s economy still has higher and more volatile inflation than its other trade partners and other emerging markets. Base on the articles attached, it is mentioned that Indonesia’s economy has been averaging a 6% grow for the past decade. (The Jakarta Post, 2013) which is a fantastic figure given such a big economy, the largest in South-East Asia. Recently, the president of Indonesia Susilo Bambang Yudhoyono suggests that Indonesia is the biggest economy that all Indonesians should be proud of. This has created instead created some frustration on the ground, especially when most Indonesian feels that the economy is not doing as good as what was reported. Despite the fact that the Indonesian economy has thrived progressively with all the statistics and figures looking positive on an economic perspective, this however may not be the actual economic performance of Indonesia. The focus of this discussion will be on the different economic problems that the country is having; the causes and impacts of them as also on the solutions to the problems listed. Unemployment The Problem The unemployment rate continues to be a problem in Indonesian economic, latest report has shows there is still an unemployment rate of 5.92% as of February 2013. Although there have been measures to reduce the figure but was not able to make a widely real impact toward unemployment, particularly due to the stagnant wages and rapid hikes in food, oil and gas price. There are actually more unemployment in the urban areas than the

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