US ‘tapering’ adds to Indonesia’s problems in election year

Dancers in Bali welcome the start of 2014 - election year in Indonesia (photo: dpa)
Dancers in Bali welcome the start of 2014 - election year in Indonesia (photo: dpa)

The US Federal Reserve’s decision to begin cutting back on quantitative easing came as Indonesia - Southeast Asia’s largest economy – faced challenges including a widening current account deficit, inflation and falling demand for its commodities. GIS guest writer Yang Razali Kassim says Jakarta fears that Washington ‘tapering’ could lead to large capital outflows as it prepares for elections in 2014.

US ‘tapering’ adds to Indonesia’s problems in election year

AS INDONESIA enters 2014 - an election year which will see President Susilo Bambang Yudhoyono stepping down - its economic policymakers are keeping a wary eye on the US Federal Reserve’s monetary stimulus policy, know...

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