Economics
Indonesia’s Economy Grows Less Than Forecast on Spending Cut
- Economic expansion slows for second straight quarter
- Growth seen around 5% for next two years: Capital Economics
Workers move bags of cement into a ship in Jakarta.
Photographer: Dimas Ardian/BloombergThis article is for subscribers only.
Indonesia’s economy expanded less than forecast in the fourth quarter as government spending was curbed by a legal cap on the fiscal deficit.
Southeast Asia’s biggest economy is still undershooting President Joko Widodo’s growth target of 7 percent amid a slowdown in China and lower commodity prices. That’s even after the central bank cut rates six times last year in a bid to boost lending and growth. While the economy is expected to pick up this year, with the International Monetary Fund forecasting 5.1 percent growth, the government is warning of headwinds from global uncertainty, including from policies being introduced by U.S. President Donald Trump.