Indonesia - growth @ 'probably' 6%+

[Aaron Sice]

news ahead of the news.

http://www.bloomberg.com/news/2012-...en-exceeding-6-reduces-need-for-rate-cut.html

Indonesia’s economic growth probably held above 6 percent last quarter, as domestic spending and rising investment countered falling exports, giving the central bank room to refrain from cutting interest rates.

Gross domestic product probably grew 6.2 percent in the three months through September from a year earlier, according to the median estimate of 12 economists surveyed by Bloomberg News ahead of a government report due Nov. 5. The economy expanded 6.37 percent in the previous quarter. Bank Indonesia will probably keep its benchmark rate at 5.75 percent on Nov. 8, according to all 11 economists in a separate survey.

as the largest permanent member state of ASEAN, this is good news for Aust/NZ and our 2009 FTA with ASEAN.

rupiah undergoing massive inflation though.

 

[zed_kid]

this is probably good news. i'm gonna probably go get a latte now, ciao

 

[onetwothreefour]

Yeh. Indonesia is replacing India, in term of economic growth. Majority of the population are under 35yo.

I have been wanting to trade there and looking for an online broker that can trade there without huge fees.

Compare to India, Indonesia is more reliable.

 

[Melbournian]

have to disagree - indonesia's system is so corrupted i would say it ranks in the top 3 in Asia.

the majority of people in are living in shed houses and some even live below bridges in the main cities. If it is really growing wages should grow too similar to china whereby it is more expensive to hire labour.

 

[Aaron Sice]

have to disagree - indonesia's system is so corrupted i would say it ranks in the top 3 in Asia.

the majority of people in are living in shed houses and some even live below bridges in the main cities. If it is really growing wages should grow too similar to china whereby it is more expensive to hire labour.

they live like this in current day naples, italy.

 

[onetwothreefour]

On the bigger picture, Indonesia has more room to improve.

So, it depends on your perspective.

If you look at the small details, then look at USA. Their solution to their problem is to print more money.

Indonesia does not rely much on foreign imports and it was one of countries that did well during gfc.

 

[kum yin lau]

Hi, memories are very short. Remember 1995?

KY

 

[rawna]

Hi, memories are very short. Remember 1995?

KY

What happens on 95? I remember on 98, we have to run for our live due to riot

 

[Melbournian]

did well during gfc? are you for real? if you read the newspapers yeah all is great. But actual real life scenarios - businesses were suffering etc.

back in the asian financial crisis in 98 - they also had the president removed and there was serious case of riots that damaged the economy and the consumer confidence.

i hate to say this but the level of education for many of average income earners is not high and therefore they are subjected to low income. their work ethics are low and they can't seem themselves pushing forward to better their lives. The only people that prosper are the ones in the business world or running the show.

there is also a high level of corruption - anybody who knows anything about indonesia should know this - as it takes money to get anything done and without the know how many corporates just backed away. there are cases where the elite class do not even pay for their costs for goods and services and ran way leading the international companies to fight their way in court which ultimately leads to nothing.

 

[HiEquity]

Looks like Paul Keating agrees with you Aaron. I also wonder whether we have been paying enough attention to our own backyard and too much to those countries whose circumstances are well beyond our influence. We could be making so much more of this relationship but too often we look past what is right under our nose.

Sure they're far from perfect but they are hardly the lone ranger on that sort of thing in the region. Greater engagement from countries like Australia could see them make substantial improvements whereas the same level of engagement with China would see absolutely nothing change. Personally I think we should focus more on areas and opportunities where we can actually make a difference.

While I agree they have a long way to go, they have also come along way over the last couple of decades.

 

[willair]

http://www.abc.net.au/news/2012-11-15/keating-urges-australia-to-focus-on-indonesia/4372574

 

[onetwothreefour]

@HE: great summary...


Indonesia is growing and doing better than many other countries..

@KY: I was not in Indonesia in 1995. My family migrated to OZ back in the 80s. My parents felt that something was about to happen. We had choices to migrate, US, Holland, and OZ. They picked OZ....

The road to prosperity would not be a smooth one. There are outside influences, like the leader of USA etc, but the potential to grow is big.
Indonesia has lots of resources and bursting to grow.
It's just like a poor growing child that has lots of potential. So from investing point of view, we need to nurture this child and have relationship with him/her.

@Melb: some of my cousins have similar view to yours, but they live in privilege live, with maids etc. Their hobby is shopping, so the people that they meet are pretty much in the service industry.

 

[Melbournian]

even if it is growing and has lots of natural resources - unless you're in the elite few or have the connections to get something out of it - it merely means nothing to the average person.

look at malaysia - they have a lot of natural resources too which is only shared by an elite few at the top.