Indonesia’s Growth Slows Down

Indonesia’s Growth Slows Down

http://www.bloomberg.com/apps/news?pid=20601068&sid=arwaPpQyrlV0&refer=economy

Indonesia’s economy has been expanding at a very slow rate as the world recession has affected demand. It reduced prices of the nation’s rubber, palm oil and electronics exports. The biggest economy of South East Asia grew at a less-than-expected 5.2 percent in the fourth quarter from last year.

Japan’s economy, which is Indonesia’s biggest overseas market, has gone down. Bank of Indonesia may be pressurized to add to three interest-rate cuts in the past three months as the government expects exports to rise at the slowest pace in the past nine years. The central bank needs to lower its policy rate in order to encourage economy growth because if this trend carries on, then there will definitely be negative growth in the third quarter.