Indonesia’s impressive upswing to stay on track

Indonesia’s Q3 GDP growth accelerated to 4.2% y/y and all the key indicators point to a further pick up in coming quarters, with domestic demand leading the way. We are very positive on the outlook and on the government’s ability to lock-in structural reforms and lift long run sustainable growth. The one downside is that monetary tightening looks imminent: we judge from January 2010.

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