Cloudy outlook: A file photo of people passing a screen showing stock indexes in Jakarta. A rush to safety has seen US$249mil in foreign capital leaving Indonesia’s bond market since last October. — AFP
JAKARTA: Further escalation in the Middle East conflict could pose multi-layered economic risks to Indonesia, ranging from further capital outflows to weaker gross domestic product (GDP) growth, according to analysts and some former government officials.
Speaking at an online event held by the Eisenhower Fellowships on Monday, former finance minister Bambang Brodjonegoro said Indonesia’s economic growth this year could end up between 4.6% and 4.8% if further escalation occurred, short of the government’s target of 5.2%.
