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Indonesia: Recent Economic Developments

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  • International Monetary Fund

Abstract

This paper reviews economic developments in Indonesia during 1994–96. Following the easing of domestic demand pressures, the focus of monetary policy shifted in early 1993/94 to supporting economic growth, as concerns developed over an incipient weakening of export performance and output. At the same time, the fiscal position was strengthened. Reflecting the strong growth in non-oil/gas revenue, the overall central government deficit, excluding oil/gas revenue, declined by 2 percentage points of GDP. With the shift in monetary policy, interest rates declined rapidly, and there was a strong pickup in credit to the private sector.

Suggested Citation

  • International Monetary Fund, 1996. "Indonesia: Recent Economic Developments," IMF Staff Country Reports 1996/092, International Monetary Fund.
  • Handle: RePEc:imf:imfscr:1996/092
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