Indonesia

December 2005 | Risk Summary

President Susilo Bambang Yudhoyono has announced a restructuring of the key economics-related portfolios consistent with his desire to improve macroeconomic management. Among the most significant cabinet changes is the re-appointment of the former economy minister, Boediono, as chief economics minister. While efforts aimed at reinvigorating economic progress against a backdrop of weakening growth are to be welcomed, recent deteriorations in the fiscal and external accounts are unlikely to be reversed in the short-term. Nevertheless, Boediono’s return should raise external confidence in the ability of the authorities to pursue prudent economic

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