Description

After a dismal Q1 and Q2, Indonesia is expected to continue experiencing slow growth even in Q3 2015. Devaluation of Yuan, an impending rise in interest rate in the US, and sluggish recovery of the US will weigh on the country’s GDP growth in Q3 2015. GDP growth might be little better in Q3, given the improved fiscal position after fuel subsidy abolishment and strong infrastructure investment towards education and health. Given the reformed investment norms and new package of tax incentives, FDI in Indonesia is on the rise since April 2015, and the same is expected to continue in Q3 2015 as well.