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Overheated economy will not hit Indonesia

JAKARTA: Indonesia is estimated not to suffer an overheated economy so far, even though a number of emerging countries have already experienced it, such as China and India."Now, many parties agree Indonesia will be going better. Even, International Monetary

JAKARTA: Indonesia is estimated not to suffer an overheated economy so far, even though a number of emerging countries have already experienced it, such as China and India."Now, many parties agree Indonesia will be going better. Even, International Monetary Fund has reviewed that Indonesia is the only one country that doesnt experience any overheating among other emerging countries as China and India," said Aviliani, a senior economist at Institute for Development of Economic and Finance (Indef) in an event of The 7th Annual Capital Market Update 2011 today.The great overheated economy in China and India because both countries had already realized a large-scaled investment since 8-10 years ago. Contrarily, the infrastructure and real sector growths of Indonesia are still running slow.Thats why Indonesias economy has not been overheated yet. Even, the inflation in Indonesia is caused by the goods distribution, not by monetary issue or money circulation, she confirmed.Therefore, there are still great potencies for infrastructure development. Nevertheless, the government should watch on the strengthening of Rupiah that is predicted to occur for long term considering that the economic recovery of Europe and US will not be ended any time soon. (t01/msw)

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