World Economy

Indonesia Economy Slows

Indonesia Economy SlowsIndonesia Economy Slows

The economy has begun to show signs of slowing down as Indonesia is entering the year of politics. Simultaneous elections in 171 regions have just been completed in a peaceful and legitimate manner, Antara reported. The registration of candidates running for house of representatives seats is underway, while the registration of presidential and vice presidential candidates is scheduled for Aug. 4-10. The campaign will start on Sept. 23, and the general and presidential elections will be held simultaneously on April 17. However, the economy is experiencing some turbulences due to the massive outflow of foreign funds from the country’s capital and bond markets, which has led to the sharp fall of the rupiah. An estimated $7 billion in foreign funds has been pulled out of the country since January. The Jakarta Composite Index, the main gauge of the Indonesian Stock Exchange, has lost 7.8%, while the rupiah has depreciated by around 5.6% against the United States dollar, making it one of the hardest hit currencies in the region.


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