World Bank2017-06-152017-06-152011-06https://hdl.handle.net/10986/27172Indonesia's economic performance through mid-2011 has been positive. Solid growth has been accompanied by further portfolio capital and foreign direct investment inflows. Public and financial sector balance sheets remain strong. However, events over the past quarter serve as a reminder of a number of Indonesia's ongoing policy challenges. At the same time, the launch of the government's master plan 2011-2025 has focused attention on the investments and policy reforms which can help Indonesia reach its future growth potential. Finally, heightened international risk aversion originating from the Greek debt crisis, and the potential market implications of any haircut, were it to occur, are a reminder of the external shocks which could prompt reversals of short-term capital flows to Indonesia. However, events over the past quarter are a reminder of the current challenges which are faced and the need to put in place, and implement, the policies and investments necessary for Indonesia to reach its potential as a leading global growth driver of the next few decades.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNTINGADVERSE IMPACTADVERSE IMPACTSAGRICULTUREASSET PRICESBALANCE OF PAYMENTBALANCE OF PAYMENTSBALANCE SHEETSBANK BALANCE SHEETSBANKING SECTORBANKING SECTORSBASIS POINTBASIS POINTSBASKET OF GOODSBENEFICIARIESBOND INDEXBOND ISSUANCEBOND SPREADSBROAD MONEYBUDGET DEFICITBUDGET DEFICITSCAPACITY CONSTRAINTSCAPITAL ACCOUNTCAPITAL ADEQUACYCAPITAL FLOWSCAPITAL FORMATIONCAPITAL OUTFLOWSCASH TRANSFERCDSCOMMERCIAL BANKCOMMERCIAL BANK LENDINGCOMMERCIAL BANKSCOMMODITYCOMMODITY PRICECOMMODITY PRICESCOMPARATIVE ADVANTAGESCOMPETITIVENESSCONNECTIVITYCONSUMER LOANSCONSUMER PRICE INDEXCONSUMERSCONSUMPTION EXPENDITURECREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT EXPANSIONCREDITWORTHINESSCROSS-BORDER FLOWSCURRENT ACCOUNT SURPLUSDEBT CRISISDEBT ISSUANCEDEBT LEVELSDEBT REPAYMENTSDEBT SERVICEDEBTORDEPOSITDISBURSEMENTDISBURSEMENTSDOMESTIC CREDITDOMESTIC FINANCIAL MARKETSDOMESTIC LIQUIDITYDOMESTIC MARKETECONOMIC ASSUMPTIONSECONOMIC DEVELOPMENTECONOMIC INTEGRATIONECONOMIC OBJECTIVESECONOMIC ORDERECONOMIC OUTLOOKECONOMIC PERFORMANCEECONOMIC STRUCTURESEMERGING ECONOMIESEMERGING ECONOMYEMERGING MARKETEMERGING MARKET BONDEMERGING MARKET ECONOMIESEMERGING MARKETSEQUIPMENTEQUITIESEQUITY HOLDINGSEQUITY INDEXEQUITY INDICESEQUITY MARKETSEQUITY PRICESEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT GROWTHEXTERNAL DEBTFINANCIAL ASSETFINANCIAL CRISISFINANCIAL MARKETFINANCIAL MARKET PARTICIPANTSFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SYSTEMFISCAL BURDENFIXED CAPITALFOOD PRICEFOOD PRICESFORECASTSFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFRAUDFREE TRADEFUTURE GROWTHGDPGDP DEFLATORGDP PER CAPITAGLOBAL BONDGLOBAL ECONOMIESGLOBAL ECONOMYGLOBAL MARKETGOVERNMENT BONDGOVERNMENT BOND YIELDSGOVERNMENT BUDGETGOVERNMENT EXPENDITURESGOVERNMENT REVENUESGOVERNMENT SECURITIESGOVERNMENT SPENDINGGOVERNMENT SUBSIDIESGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROWTH POTENTIALGROWTH PROJECTIONSHOLDINGHOLDINGSHUMAN RESOURCESIMPLIED VOLATILITYINCOMEINCOME TAXINFLATIONINFLATION EXPECTATIONSINFLATION RATEINFLATIONARY EXPECTATIONSINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINTEREST PAYMENTSINTEREST RATEINTEREST RATESINTERNATIONAL DEVELOPMENTSINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL INVESTORSINTERNATIONAL MARKETINTERNATIONAL RESERVESINTERNATIONAL TRADEINVENTORIESINVESTMENT CLIMATEINVESTMENT PORTFOLIOLABOR MARKETLOANLOAN RATESLOCAL CURRENCYLOCAL GOVERNMENTLOW INTEREST RATESMACROECONOMIC ANALYSISMARKET DEVELOPMENTMATURITYMONETARY POLICYNATIONAL DEVELOPMENTNATURAL RESOURCESNET EXPORTSNON-PERFORMING LOANNONPERFORMING LOANSNPLOIL PRICEOIL PRICESOPEN MARKETOPEN MARKET OPERATIONSOPPORTUNITY COSTOPPORTUNITY COSTSPOLICY RESPONSEPORTFOLIOPORTFOLIO CAPITALPORTFOLIO CAPITAL INFLOWSPORTFOLIO FLOWSPORTFOLIO INFLOWSPOWER PARITYPRICE INCREASESPRIME LENDING RATEPRIME RATEPRIVATE INVESTMENTSPROFIT MARGINPUBLIC DEBTPURCHASING POWERREAL GDPREAL INTERESTREAL INTEREST RATERESERVERESERVE REQUIREMENTRESERVE REQUIREMENTSRESERVESRETURNRISK AVERSIONRISK CONTROLRISK PREMIUMSAFETY NETSECURITIES HOLDINGSSHORT-TERM CAPITALSHORT-TERM EXTERNAL DEBTSOCIAL SAFETY NETSOVEREIGN BONDSSOVEREIGN DEBTSOVEREIGN RATINGSSTOCKSSUPERVISION MECHANISMSTAXTAX REVENUESTERM DEPOSITTOTAL REVENUETRADE BALANCETRADE LIBERALIZATIONTRADINGTREASURYTREASURY BILLSUNEMPLOYMENTUNEMPLOYMENT RATEUNEMPLOYMENT RATESVARIABLE-RATE BONDWHOLESALE MARKETSWHOLESALE PRICESWORKING CAPITALReportWorld Bank10.1596/27172