Thursday, January 19, 2006

2006 Outlook

We just released our 2006 outlook yesterday. Here's a press coverage by Bisnis Indonesia (non-permanent link). Keypoints:
  1. The economy is to slow down up to the 1st half of 2006, then rebound in the third quarter.
  2. The government should focus on effective fiscal policy (especially in the first two quarters), while maintaining tight monetary policy.
  3. The effectiveness of government bureaucary is still an obstacle in promoting better investment climate.
  4. Reducing high cost economy, ensuring labor market flexibility, and improving the effectiveness of decentralization are keys.
  5. Further liberalization is needed to foster growth.

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