Watch Out for Economic Instability


  • The worst trade balance in history provides an important sign about the potential for future economic instability. It is not easy for the government to turn things around considering that Indonesia’s exports are more dominant in raw goods.
  • Global conditions are also not conducive, and even tend to be more complex because of the increasing tensions between the US and Iran.
  • The potential for instability is likely to originate from the dynamics of the rupiah exchange rate against the dollar.

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