Indonesia hypes the economy

Despite current unfavorable economic indicators, optimistic 2006 budget parameters set by the Indonesian government assume the country’s US$280 billion economy will grow by 6.2% to $304 billion, and that inflation will be pegged at about 8%, as will interest rates be pegged.

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October fuel increases had pleased investors and the market but the ensuing hike in the cost of living has been a major blow to the poor. The price of kerosene, the main cooking fuel of the masses, soared by 185.71 %, while petrol increased by 87.5 % and diesel by 104.76%. Inflation also hit hardest at the lower end of the consumer sector as wealthier consumers are better placed to protect themselves against inflation.

Asia Times