Australia is lending A$1.5 billion to Indonesia to help it get through the economic crisis unleashed by Covid-19. This is welcome news and another sign of Australia stepping up to assist key partners in the region during an extraordinary global crisis.
The Australian loan will help the Indonesian
Even before the Covid-19 pandemic, it had become routine for central banks in rich countries to help fund budget deficits by buying government bonds. “Quantitative easing” (QE) has been common since the 2008 global financial crisis, keeping interest rates down. With Covid, some central banks
While Australia’s embrace of economic sovereignty has so far involved more rhetoric than real financial resources, cash incentives for reshoring manufacturing are gathering pace in other countries.
Last week’s €100 billion (A$162 billion) economic stimulus program from French
The Morrison government needs to urgently consider how it might best help Indonesia manage the economic risks posed by the Covid-19 pandemic. Indonesia faces a perilous outlook. The government is struggling badly to control the virus. Making matters far worse, Indonesia has also been among
Slow but steady
It has often been said that despite periodic diplomatic upheavals, Australia has been fortunate to have a sprawling multi-ethnic Asian neighbour to its north that has managed to remain largely unified.
But here’s a fresh take on Indonesian stability that puts the recently agreed
Capital has been flowing out of emerging economies around the world, causing currencies and financial markets to fall. While tightening global liquidity was the initial catalyst, the threat from Donald Trump’s trade war and fear that "contagion" might spread from Turkey and Argentina have added
Negotiations for the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) entered extra time this week, as negotiators agreed to add an 11th round (the 7th since leaders reactivated the initiative in March 2016) after negotiations in November failed to produce a final deal
International capital flows present serious policy challenges. In textbook economics, such flows are unambiguously beneficial. But volatile flows were a key cause of the 1997 Asian crisis, cross-country financial linkages exacerbated the 2008 global crisis, and capital flows were once again central
Things are gradually improving for Indonesia’s economy. Policymakers have successfully assuaged financial markets of their macroeconomic stability credentials (for now) and economic growth seems to have stabilised at a still robust 5%.
Hopes are high that the bottom of the cycle has been reached
Among the many floral tributes to Jakarta Governor Basuki Tjahaja Purnama, who lost his bid for a second term in last month's religiously-charged election, one in particular struck me.
'Mr Ahok,' it read, using the governor's nickname, 'we are waiting for you to become minister of energy and
Five years back Moody’s and Fitch credit rating agencies (CRAs) reinstated Indonesia to ‘investment grade’ ranking, recognising the country had both recovered from the 1998 crisis and recorded a decade of good growth. But the third of the Big Three - Standard and Poors (S&P) - is
More than anything, President Joko Widodo's brief recent visit to Australia showcased a warm, personal rapport between him and Malcolm Turnbull, and the Prime Minister is to be commended for his efforts to forge the connection, wrote Matthew Busch in the Australian on 3 March
US President elect Donald Trump's confirmation he intends to pull out of the TPP has led to confusion and uncertainty across the region. For its part, Indonesia is still keen to sign on to the TPP but there are many factors to consider in the cost-benefit analysis on the topic the