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In the Midst of Global Financial Slowdown: the Indonesian Experience

Siregar, Reza and Wiranto, Willeam (2009): In the Midst of Global Financial Slowdown: the Indonesian Experience.

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Abstract

The objective of our study is to review and debate selected factors frequently underlined as the foundations to the strength and the resilient of economic growth in Indonesia in recent years. We first examine closely the compositions of the country’s exports to particularly highlight the role of primary commodities and diverse export destinations in cushioning the country’s balance of payment position. Next, our study assesses the country’s management of macroeconomic policies, especially the monetary and fiscal policies, and debates the overall effectiveness and limitations of these policy measures. Lastly, this paper explores the repentant stage of the country’s infrastructure, arguably a vital factor for the country’s ability to attract the much-needed domestic and foreign direct investment.

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