Thursday, 7 February 2013

Indonesia is … not well.

Sent through by our roving Asian correspondent Suzuki Samurai is this piece on Indonesia that appeared in The Diplomat:

Indonesia has made a remarkable comeback from being Southeast Asia’s economic basket case in 1998 to an emerging market whose economy has been growing annually at more than 5 percent for several years.

Yay!

Yet, Indonesia’s economic growth is neither sustainable nor inclusive.

Damn.

An inconvenient fact is that Indonesia’s economic growth is mainly driven by a commodity boom fuelled by China’s appetite for raw materials and global demand for biofuels [which bubble is soon to burst] …
    The other main driver of Indonesia’s economic growth is domestic consumption. This is mostly driven by easy access to credit cards.

Sounds a little too much like a rather large island just the other side of the Tasman, doesn’t it.

1 comment:

  1. the drunken watchman9 Feb 2013, 18:48:00

    aren't we getting a little ahead of ourselves?

    last I heard it was Japan and China going to pop their bubbles,now we have moved onto Indonesia and Australia?

    (oops, I forgot about Spain and the Euro :)

    ReplyDelete

1. Commenters are welcome and invited.
2. Off-topic commenters however will be ignored.
3. Read the post before you comment.
4. Challenge facts presented if wrong, but don't ignore them when they're not.
5. Say what you mean, and mean what you say.
6. Off-topic grandstanding, trolling and spam is moderated. (Unless it's entertaining.)