Investment slows

Article Abstract:

Indonesia saw a decline in approved foreign investments for the 1st half of 1992 as investors decided to place their capital in other Asian countries. Efforts to increase domestic investment to counteract the decline also failed because of Bank Indonesia's tightened policies on credit. The Investment Coordinating Board was able to approve only $3.4 billion in foreign investment applications with most coming from the chemical and metal industries. At a realization rate of 65%, estimated actual amount of investment will only reach $2.2 billion in the 1st half of 1992.

Foreign investments

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Mixed picture

Article Abstract:

Indonesia's economic status seems to be intractable lately as when the government announced having lowered the inflation to 4.9% in 1992. While the FY 1992 books revealed that the inflation drop was only up to 7-8%. Other economic indicators were the price hikes of 5% in January and February due to the 23% raise in fuel prices. As a result, otherservices such as electricity and transport followed in a domino principle. To combat these negative developments, Pres Suharto asked for the lowering of lending rates for small firms which the banks dutifully obeyed.

Economic indicators

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Inflation squeeze

Article Abstract:

The modest growth of the Indonesian economy in 1992 can be attributed to the tight monetary policy the government adopted in 1990. The country's inflation rate, which hit a record-high of 9.5% in 1991, is expected to stabilize at about 7% to 8% in 1992. The Gross Domestic Product will grow at an estimated 5.5% in 1992. Indonesia's trade balance improved from $2.5 billion in 1991 to $4.1 billion in 1992. The government is expected to continue with the tight monetary policy until 1993.

Economic development, Inflation (Finance), Inflation (Economics)

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