| |
| |
![]() |
| |
|
| |
|
| |
|
JAKARTA: The World Bank is confident Indonesia will be able to weather the expected global economic slowdown reasonably well this year.
Giving its 2008 forecast in Jakarta, the World Bank said Southeast Asia's largest economy will grow a slower six percent in 2008 - lower than the 6.4 per cent projected by the Indonesian government.
But growth is expected to return to 6.4 per cent next year - when both parliamentary and presidential elections are scheduled to take place.
In its report, the World Bank also highlighted higher food and fuel prices as areas of concern for the economy, similar to other economies in the region.
Year-on-year inflation in February for domestic food prices is running at 10.4 per cent, far higher than the overall inflation of 7.4 per cent.
These higher food prices are affecting the poor.
The government's refusal to cut fuel subsidies in the face of soaring global fuel prices will cause severe strain on the state budget.
Observers said the Yudhoyono administration fears that any rise in fuel prices may lead to protests and political instability ahead of the 2009 elections.
Fuel subsidies are expected to hit US$14.3 billion this year - equivalent to the government's capital and social spending. - CNA/vm
|
