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Indonesia: Selected Issues

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  • International Monetary Fund

Abstract

Indonesia’s external borrowing spreads increased by more than 1000 bps from mid-2007 to late 2008, before subsiding in recent months. The large increase in spreads prompted questions about whether the spreads adequately reflect the improvements in fundamentals made over the past few years. This Selected Issues paper examines the determinants of Indonesia’s spreads, and finds that fundamentals can explain both the level of and the increase in spreads. It uses a cross-country panel regression model of emerging market sovereign spreads to yield valuable insights into the pattern of Indonesia’s sovereign spreads.

Suggested Citation

  • International Monetary Fund, 2009. "Indonesia: Selected Issues," IMF Staff Country Reports 2009/231, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2009/231
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=23147
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    References listed on IDEAS

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    1. International Monetary Fund, 2008. "Indonesia: Selected Issues," IMF Staff Country Reports 2008/298, International Monetary Fund.
    2. Ms. Laura E. Kodres & Kristian Hartelius & Kenichiro Kashiwase, 2008. "Emerging Market Spread Compression: Is it Real or is it Liquidity?," IMF Working Papers 2008/010, International Monetary Fund.
    3. Mr. Roberto Garcia-Saltos & Mr. Douglas Laxton & Michal Andrle & Haris Munandar & Charles Freedman & Danny Hermawan, 2009. "Adding Indonesia to the Global Projection Model," IMF Working Papers 2009/253, International Monetary Fund.
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    Cited by:

    1. Nizar, Muhammad Afdi, 2010. "Penentuan Efek Dan Arah Kebijakan Fiskal Pemerintah Indonesia: Fiscal Impulse Measure [Fiscal Policy Stance in Indonesia : Fiscal Impluse Measure]," MPRA Paper 65603, University Library of Munich, Germany.
    2. International Monetary Fund, 2010. "Indonesia: Selected Issues," IMF Staff Country Reports 2010/285, International Monetary Fund.
    3. Abdurohman & Budy P. Resosudarmo, 2017. "The Behavior Of Fiscal Policy In Indonesia In Response To Economic Cycles," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 377-401, June.
    4. International Monetary Fund, 2011. "Indonesia: Selected Issues," IMF Staff Country Reports 2011/310, International Monetary Fund.

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