Indonesia Set for Trillion-Dollar Economy in Bittersweet Triumph [Bloomberg Business News]
Nomura Holdings Inc ADR American Depositary Shares (NMR)
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Source: Bloomberg Business News
Indonesia is on track to become a trillion-dollar economy and should be the envy of Southeast Asia. Yet on some key measures, the region’s biggest economy is falling behind. The nation lags its neighbors on infrastructure development, faces a fiscal shortfall that’s heaping pressure on the state budget and still has 28 million people living in poverty. That’s even after reforms saw the economy’s value more than double over the past decade to $932 billion, with President Joko Widodo’s government forecasting growth this year of about 5 percent. Size isn’t everything. Even after eight rate cuts since the beginning of last year, the economy is struggling to fire up: loan growth remains muted, while the central bank expects low inflation to linger for some time. The picture is made more complex by a wide divergence in growth across the archipelago of more than 17,000 islands, with rates ranging from negative to more than 7 percent. “This is a pretty large econom
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