World Bank2014-01-272014-01-272013-07https://hdl.handle.net/10986/16613The second quarter of 2013 was an eventful one as Indonesia's economy, policy settings and financial markets adjusted to pressures which have been mounting over recent quarters and to shifts in the global environment. Following slightly weaker-than-expected growth in the first quarter, there are signs that domestic demand, particularly investment, has continued to moderate. On the fiscal front, the combination of lower revenues and higher subsidy spending continued to pressure public finances. A revised Budget, incorporating a long a waited increase in subsidized fuel prices, along with a comprehensive compensation package to reduce the impact of higher fuel prices on the poor, was approved on June 17. Meanwhile, international financial markets have reacted strongly to the prospect of quantitative easing in the US winding down in coming quarters, triggering a major sell-off in emerging market assets, including Indonesia, prompting Bank Indonesia (BI) to adjust interest rates higher.en-USCC BY 3.0 IGOACCOUNTINGADVERSE IMPACTAGRICULTUREASSET MARKETSASSETSBALANCE OF PAYMENTSBANK CREDITBANK DEPOSITBANKING SECTORBASIS POINTSBENCHMARKBENEFICIARIESBOND FLOWBOND ISSUANCEBOND MARKETSBOND SPREADSBOND YIELD CURVEBUDGET DEFICITCAPACITY CONSTRAINTSCAPITAL ACCOUNTCAPITAL FORMATIONCAPITAL GOODSCAPITAL INVESTMENTCASH TRANSFERCASH TRANSFERSCOMMERCIAL BANKCOMMERCIAL BANK LENDINGCOMMODITIESCOMMODITYCOMMODITY EXPORTCOMMODITY EXPORTSCOMMODITY PRICESCONFIDENCE INDEXCONSUMER EXPECTATIONSCONSUMER GOODSCONSUMER PRICECONSUMER PRICE INDEXCONSUMER PRICESCONSUMERSCONSUMPTION EXPENDITURECORPORATE BONDCORPORATE BOND ISSUANCECORPORATE PROFITSCREDIT GROWTHCREDIT MARKETSCURRENCYCURRENCY DEPRECIATIONCURRENCY EARNINGSCURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITDEBT FINANCINGDEBT LEVELSDEBT MANAGEMENTDEBT STOCKDEPOSITDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING ECONOMIESDIRECT INVESTMENTDISBURSEMENTSDISINFLATIONDOLLAR BONDDOLLAR VALUEDOMESTIC BONDDOMESTIC BOND MARKETDOMESTIC BONDSDOMESTIC EQUITIESDOMESTIC FINANCIAL MARKETSDOMESTIC GOVERNMENT BONDSDOMESTIC PRICEECONOMIC ASSUMPTIONSECONOMIC DEVELOPMENTECONOMIC OUTLOOKECONOMIC SECTORSEMERGING MARKETEMERGING MARKET ASSETSEMERGING MARKET EQUITIESEMERGING MARKETSENERGY PRICESEQUIPMENTEQUITIESEQUITY INDICESEQUITY PRICEEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT REVENUESEXPORT SHAREEXPORTSEXPOSURESEXTERNAL DEBTEXTERNAL FINANCINGFEDERAL RESERVEFINANCIAL CRISISFINANCIAL MARKETFINANCIAL MARKET DEVELOPMENTSFINANCIAL MARKET PARTICIPANTSFINANCIAL MARKETSFINANCIAL SERVICESFINANCIAL SYSTEMFISCAL DEFICITFISCAL POLICYFIXED CAPITALFIXED INVESTMENTFOOD PRICEFOOD PRICESFOREIGN CAPITALFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN FINANCINGFOREIGN HOLDINGSFOREIGN INVESTORSFUTURE GROWTHGDP DEFLATORGLOBAL ECONOMYGOLD PRICEGOVERNMENT BONDGOVERNMENT BOND YIELDGOVERNMENT BOND YIELDSGOVERNMENT DEBTGOVERNMENT FINANCESGOVERNMENT FINANCINGGROSS DEBTGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONHUMAN RESOURCESIMPORTIMPORT GROWTHIMPORTSINCOMEINCOME TAXINCOME TAXESINFLATIONINFLATION EXPECTATIONSINFLATION RATEINFLATIONARY EXPECTATIONSINFLATIONARY PRESSURESINTEREST RATESINTERMEDIATE GOODSINTERNATIONAL BANKINTERNATIONAL FINANCIAL MARKETINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MARKETINTERNATIONAL TRADEINVENTORIESINVESTMENT ACTIVITYINVESTMENT SPENDINGINVESTOR CONFIDENCEISSUANCELAND VALUESLIQUIDITYLIQUIDITY RISKLOANLOCAL CURRENCYMACROECONOMIC INDICATORSMACROECONOMIC POLICYMARKET CONDITIONSMARKET DEMANDMARKET DEVELOPMENTSMARKET PERFORMANCEMARKET PRICEMARKET PRICESMARKET VOLATILITYMERCHANDISEMERCHANDISE TRADEMONETARY POLICYNET EXPORTSNON-PERFORMING LOANSOIL PRICEOIL PRICESOUTPUTPENSIONPORTFOLIOPORTFOLIO CAPITALPORTFOLIO CAPITAL INFLOWSPOVERTY REDUCTIONPRICE ADJUSTMENTPRICE INCREASEPRICE INCREASESPRICE INFLATIONPRICE LEVELPRIMARY MARKETPROPERTY LENDINGPROPERTY MARKETPUBLIC FINANCESPURCHASINGPURCHASING POWERRAPID DEVELOPMENTRATE OF GROWTHREAL EXCHANGE RATEREAL GDPREAL INVESTMENTREGULATORY ENVIRONMENTRESIDENTIAL MORTGAGESRETAILRISE IN INFLATIONSALESSALES GROWTHSAVINGSSECONDARY MARKETSOCIAL PROTECTIONSOLVENCYSTOCKSSTRONG DEMANDSURPLUSTAXTAX COLLECTIONTAX REVENUESTOTAL DEBTTRADE BALANCETRADE DEFICITTRADE POLICYTRADE SURPLUSTRADINGTREASURYTREASURY YIELDSUNEMPLOYMENTUNEMPLOYMENT RATEURBANIZATIONVALUE ADDEDVARIABLE RATEWAGE GROWTHWAGESWORKING CAPITALWorld Bank10.1596/16613