World Bank2017-05-192017-05-192011-10https://hdl.handle.net/10986/26663External events have dominated economic developments for Indonesia over the past quarter. The outlook for global growth has weakened and the euro zone sovereign debt crisis has intensified. International risk aversion and market volatility have increased, although they remain well below levels seen in late 2008. Equity markets have fallen and emerging markets have seen capital outflows, putting downward pressure on their currencies. Indonesia's domestic economic performance has continued to be strong but, as in other countries in the region, its financial markets have not been immune from this turbulence. Indonesia's domestic drivers of growth, its solid fiscal position, accumulation of reserves, and strengthened financial sector performance make it relatively well-placed to deal with shocks arising from the above scenarios. This improved resilience to external shocks, and a strong policy response, was seen during the 2008- 09 crisis. The final piece looks at the core development challenge of how to make growth more inclusive, as well as higher, focusing on an analysis of the province of East java.en-USCC BY 3.0 IGOACCOUNTINGASSET PRICEAUCTIONSBAILOUTBALANCE OF PAYMENTBALANCE SHEETSBANKING SECTORBASIS POINTSBOND INDEXBOND SPREADBOND YIELDBUDGET DEFICITCAPITAL ADEQUACYCAPITAL FLOWSCAPITAL FORMATIONCAPITAL INFLOWSCAPITAL OUTFLOWSCASH BALANCESCOMMERCIAL BANKCOMMERCIAL BANK LENDINGCOMMODITYCOMMODITY PRICECONSUMER PRICE INDEXCONSUMPTION EXPENDITURECORPORATE DEBTCORPORATE TAXCREDIT DEFAULTCREDIT DEFAULT SWAPCREDIT GROWTHCREDIT MARKETSCREDIT RISKCURRENT ACCOUNT BALANCECURRENT ACCOUNT SURPLUSDEBT CRISISDEBT LEVELSDEBT SERVICEDEPOSITDEVELOPING COUNTRIESDEVELOPING ECONOMIESDISBURSEMENTDOLLAR VALUEDOMESTIC BANKSDOMESTIC BONDDOMESTIC BOND MARKETSDOMESTIC ECONOMYDOMESTIC EQUITYDOMESTIC FINANCIAL MARKETSDOMESTIC GOVERNMENT BONDSDOMESTIC MARKETECONOMIC DEVELOPMENTECONOMIC PERFORMANCEEMERGING ECONOMIESEMERGING MARKETEMERGING MARKET BONDEMERGING MARKET ECONOMIESEMERGING MARKET EQUITIESEQUIPMENTEQUITIESEQUITY INDEXEQUITY MARKETEQUITY MARKET VOLATILITYEQUITY MARKETSEXCHANGE RATEEXPENDITUREEXPORT SHARESEXPOSUREEXTERNAL DEBTFEDERAL RESERVEFINANCIAL FLOWSFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL MARKET PARTICIPANTSFINANCIAL SECTORFINANCIAL SHOCKSFINANCIAL STABILITYFISCAL CONSOLIDATIONFISCAL POLICYFIXED CAPITALFOOD PRICEFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN INVESTMENTFOREIGN INVESTORSFOREIGN PORTFOLIOGLOBAL BONDGLOBAL ECONOMYGLOBAL EQUITYGLOBAL EQUITY MARKETSGLOBAL FINANCIAL MARKETGLOBAL RISKGOVERNMENT BONDGOVERNMENT BOND YIELDSGOVERNMENT DEBTGOVERNMENT REVENUEGOVERNMENT SECURITIESGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROWTH RATEGUARANTEE FUNDHOLDINGHOUSEHOLD INCOMESINCOMEINCOME TAXINFLATIONINFLATION EXPECTATIONSINFLATION RATEINFLATIONARY PRESSURESINFORMATION SYSTEMINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTINTEREST PAYMENTSINTEREST RATEINTERNATIONAL CREDITINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL CRISISINTERNATIONAL FINANCIAL MARKETINTERNATIONAL INVESTORINTERNATIONAL MARKETINTERNATIONAL PORTFOLIOINTERNATIONAL RESERVESINTERNATIONAL TRADEINVESTMENT CLIMATEINVESTOR CONFIDENCEISSUANCEISSUANCE OF GOVERNMENT SECURITIESLABOR MARKETLIQUIDITYLOANLOCAL CURRENCYMARKET EQUITIESMARKET EXPECTATIONSMARKET INSTABILITYMARKET PRICESMATURITIESMONETARY FUNDMONETARY POLICYMONEY MARKETNATURAL RESOURCESNON-PERFORMING LOANNPLOIL PRICEOPTION CONTRACTOUTSTANDING STOCKPOLICY RESPONSEPORTFOLIOPORTFOLIO FLOWSPORTFOLIO INFLOWSPRICE CHANGEPRICE INFLATIONPRICE MOVEMENTSPRICE SERIESPRIVATE INFRASTRUCTUREPRIVATE INVESTMENTPUBLIC DEBTPUBLIC SPENDINGRESERVESRETURNREVOLVING FUNDRISK AVERSIONRISK MANAGEMENTRISKY ASSETSSAFER ASSETSSECONDARY DEBTSECONDARY DEBT MARKETSSECONDARY MARKETSECONDARY MARKET AUCTIONSSECURITIES ISSUANCESOVEREIGN BONDSSOVEREIGN DEBTSOVEREIGN RATINGTAXTAX BREAKSTRADE BALANCETRADE FINANCETRADE FINANCINGTRADE SURPLUSTRADE TAXTRADINGTRANSFER OF FUNDSTRANSPARENCYTREASURYTREASURY BILLTREASURY YIELDUNCERTAINTYUNEMPLOYMENT RATEWORLD ECONOMYReportWorld Bank10.1596/26663