IMF Staff Country Reports

Indonesia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Indonesia

Publication Date:

August 7, 2024

Electronic Access:

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Summary:

Indonesia’s growth remains strong despite external headwinds. Inflation is firmly in the target range and the financial sector is resilient. The authorities have been pursuing an ambitious growth agenda to reach high-income status by 2045. This comprises public spending, institutional reforms, and Industrial Policy (IP). Risks are broadly balanced. Key downside risks include persistent commodity price volatility (e.g., from geopolitical shocks), an abrupt slowdown in Indonesia’s key trading partners, or adverse spillovers from tighter-for-longer global financial conditions. On the domestic side, a weakening of long-standing sound macro-fiscal frameworks could hamper policy credibility. On the upside, stronger-than-anticipated growth in trading partners or faster disinflation in AEs could prop up growth while deep structural reforms would raise growth over the medium term.

Series:

Country Report No. 2024/270

Subject:

Anti-money laundering and combating the financing of terrorism (AML/CFT) Crime External debt Financial regulation and supervision Financial sector policy and analysis Financial sector stability Inflation Integrated Policy Framework Prices Public debt Revenue administration Tax administration core functions

Frequency:

regular