Indonesia’s trade deficit manageable, inflation in line: ANZ

JAKARTA - Indonesia’s trade and inflation figures for August suggest mild but improving economic activity, ANZ bank reports in a research note. Indonesia posted a moderate trade deficit in August and inflation was in line with market estimates.

“Exports rebounded, but headwinds remain,” says ANZ, “with moderating commodity prices. Imports also picked up, and suggest a mild (but improving) activity growth path.

“PMI data over the month also confirm this trend, possibly signalling that the Q3 trough in growth we highlighted last month has indeed passed. Core inflation fell in September, highlighting tepid activity. However, economic data has been overshadowed by political developments over the past week.”

ANZ says that as Indoensia draws closer to the new President’s inauguration, there has been a noticeable failure for a workable coalition to coalesce around President-elect Jokowi.
“Appointed regional leaders in isolation would have a marginal impact on the economy, in our view, but would keep the ruling elite in power and may perpetuate graft. SBY made a strong statement by walking out of the Parliamentary vote, and Jokowi must come to the table to attract parties to his Alliance. “ www.live.anz.com (ATI).