Abstract
2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Indonesia
Fund Relations
(As of April 30, 2019)
Membership Status: Joined February 21, 1967; Article VIII
General Resources Account
| SDR Millions | Percent of Quota | |
|---|---|---|
| Quota | 4,648.40 | 100.00 |
| Fund holdings of currency | 3,860.21 | 83.04 |
| Reserve tranche position in Fund | 788.27 | 16.96 |
| SDR Millions | Percent of Quota | |
|---|---|---|
| Quota | 4,648.40 | 100.00 |
| Fund holdings of currency | 3,860.21 | 83.04 |
| Reserve tranche position in Fund | 788.27 | 16.96 |
SDR Department
| SDR Millions | Percent of Allocation | |
|---|---|---|
| Net cumulative allocation | 1,980.44 | 100.00 |
| Holdings | 1,116.13 | 56.36 |
| SDR Millions | Percent of Allocation | |
|---|---|---|
| Net cumulative allocation | 1,980.44 | 100.00 |
| Holdings | 1,116.13 | 56.36 |
Outstanding Purchases and Loans: None
Financial Arrangements
| Type | Approval Date | Expiration Date | Amount Approved (SDR Millions) | Amount Drawn (SDR Millions) |
|---|---|---|---|---|
| EFF | 02/04/00 | 12/31/03 | 3,638.00 | 3,638.00 |
| EFF | 08/25/98 | 02/03/00 | 5,383.10 | 3,797.70 |
| Stand by | 11/05/97 | 08/25/98 | 8,338.24 | 3,669.12 |
| Type | Approval Date | Expiration Date | Amount Approved (SDR Millions) | Amount Drawn (SDR Millions) |
|---|---|---|---|---|
| EFF | 02/04/00 | 12/31/03 | 3,638.00 | 3,638.00 |
| EFF | 08/25/98 | 02/03/00 | 5,383.10 | 3,797.70 |
| Stand by | 11/05/97 | 08/25/98 | 8,338.24 | 3,669.12 |
Projected Payments to Fund (SDR millions; based on existing use of resources and present holdings of SDRs):
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | |||||
| Charges/Interest | 7.32 | 9.89 | 9.88 | 9.88 | 9.88 |
| Total | 7.32 | 9.89 | 9.88 | 9.88 | 9.88 |
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | |||||
| Charges/Interest | 7.32 | 9.89 | 9.88 | 9.88 | 9.88 |
| Total | 7.32 | 9.89 | 9.88 | 9.88 | 9.88 |
Exchange Arrangements
The rupiah has had a de jure free floating exchange arrangement since August 14, 1997, and the current de facto arrangement is floating. The market exchange rate was Rp 14,187 per U.S. dollar as of April 30, 2019. Indonesia has accepted the obligations of Article VIII, Sections 2, 3, and 4, and maintains an exchange system free of restrictions on payments and transfers for current international transactions.
Article IV Consultation
The last Article IV consultation report (IMF Country Report No. 18/32) was discussed by the Executive Board on January 10, 2018.
Resident Representative
Mr. John Nelmes has been the Senior Resident Representative since September 2016.
Relations with Other International Financial Institutions
World Bank: https://financesapp.worldbank.org/en/countries/Indonesia/
Asian Development Bank https://www.adb.org/countries/indonesia/main
Statistical Issues
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision is broadly adequate for surveillance with some shortcomings in fiscal and external sector statistics. | |
| National accounts: Statistics Indonesia (BPS) disseminates annual and quarterly GDP (QGDP) by economic activity and expenditure components at current prices and in volume terms at 2010 prices regularly. In general, GDP estimates are based on the latest international methodologies following the System of National Accounts 2008. The QGDP estimates are based on a limited set of indirect indicators. Some sectors are influenced strongly by seasonality, with seasonally adjusted data prepared but not published. BPS has been leading the work on developing sectoral accounts and balance sheets jointly with Bank Indonesia (BI) with TA from STA. BPS and BI expect to finalize the provisional data for the years 2010–2014 by the end of 2019. The next TA mission on Sectoral Accounts will be conducted in August 2019. | |
| Price statistics: Price statistics are broadly adequate for surveillance. The index and weight refence period for PPI is 2010. In October 2013, BPS released the new Producer Price Index (PPI) covering agriculture, mining and quarrying, and manufacturing, and has published the PPI index quarterly. BPS has also expanded the mining sample to include oil and natural gas extraction, coal, and gold, and has started work to further expand PPI coverage to include 15 service industries. Currently PPI for the following service industries are disseminated: electricity, water and gas; passenger transport; hotel and restaurants. There is a need to increase dissemination frequency and update the weights for the PPI. The index and weight reference period for CPI is 2012. A recent STA TA mission assisted with improving the CPI methodology and updating weights using the results of the 2018 household expenditure survey (Survei Biaya Hidup) . The new CPI is expected from the August 2019 index. STA is assisting Bank Indonesia to develop an enhanced RPPI using Big Data on property listings. | |
| Government finance statistics (GFS): The Ministry of Finance (MOF) is committed to keeping the requirements of fiscal statistics at the forefront of ongoing fiscal reforms, with better statistical monitoring one of the goals of the current efforts. The authorities are continuing their efforts to adopt the GFSM 2001/2014 standards, with assistance from STA as part of a regional GFS project. Significant progress has been made in these areas and, Indonesia now reports to STA annual general government data (including balance sheet data) covering the period from 2008 onwards. Annual general government GFS are currently available 12 months after the end of the reference period and these data are published on the GFS website: http://www.gfs.djpbn.kemenkeu.go.id/en. The timeliness of the annual data will improve once all systems are in place. Aggregated monthly data on the budget of the central government are available with a one-month lag. | |
| In late 2015, the authorities have started to compile quarterly general government data based on estimates of local government data. Quarterly general government GFS (operations statement) are available 6 months after the end of the reference quarter. The quarterly general government data are yet to be published on the GFS website because the authorities are improving these data in terms of coverage of local governments and timeliness with the development of new regional financial information system. Limited quarterly general government GFS data are published in IFS. The coverage and timeliness of public debt statistics are generally adequate. | |
| Monetary and financial statistics (MFS) and financial soundness indicators (FSIs): Good quality monetary statistics are compiled by BI on a timely basis. BI compiles and reports monetary data using the Standardized Report Forms (SRFs), from which an integrated database and alternative presentations of monetary statistics can be drawn to meet the needs of BI and the IMF. Additional challenges include timely revisions of published banking sector data after supervisory verification. With the support of a Fund TA mission in October 2014, BI expanded the coverage of the OFCs survey, which since January 2015 includes finance companies, insurance companies, pension funds, the state-owned pawn shop (PT Pegadaian), and the Indonesian export financing institution (Eximbank); achieving almost full coverage of the subsector. OFC data are reported on a monthly basis. The mission also assisted BI in advancing the production of flow-based monetary statistics and quarterly financial accounts. BI compiles and reports to the Fund all (12) core and 12 encouraged financial soundness indicators (FSIs) for deposit takers, all (two) encouraged FSIs for OFCs, two encouraged FSIs for nonfinancial corporations, one encouraged FSI for households, two encouraged FSIs for market liquidity, and three encouraged FSIs for the real estate sector, which are published quarterly on the Fund’s FSI website. Indonesia reports data on some key series and indicators of the Financial Access Survey (FAS), including mobile money and the two indicators adopted by the UN to monitor Target 8.10 of the Sustainable Development Goals (SDGs). | |
| External sector statistics (ESS): Trade data have been improved in recent years. Import and export transactions of free trade zones and bonded warehouses are captured in goods data of balance of payments (BOP) statistics. For financial account, the methodological basis for the compilation of direct investment (DI) data needs substantial improvement. Inflows are currently calculated based on loan disbursements to companies that have foreign equity using a fixed ratio to estimate equity inflows. The errors and omissions in BOP has been large and predominantly negative and could be related to the under coverage of imports in current account or assets in the financial account. Financial transactions data are reconciled with changes in the international investment position (IIP), except data on DI. IIP data are compiled and published annually and quarterly. External debt statistics have improved considerably with the introduction of an External Debt Information System (EDIS) in 2002 and the recent initiative to publish monthly indicators. Also, as a result of the ongoing reconciliation of data conducted by BI, the IIP and external debt data are fully consistent. However, improvements are still needed with respect to components of private corporate sector data, particularly in distinguishing between scheduled and actual debt service, in estimating the accumulation/reduction of private sector payments arrears, and in estimating reschedulings/debt reductions received by the private sector from external creditors. | |
| II. Data Standards and Quality | |
| Indonesia has subscribed to the Special Data Dissemination Standard (SDDS) since September 1996, observing most of the SDDS requirements. Indonesia uses the SDDS flexibility options for the timeliness of the labor market categories (employment, unemployment, and wages/earnings) and general government operations. | Data Reports on the Observance of Standards and Codes (ROSC) was completed in 2005. |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision is broadly adequate for surveillance with some shortcomings in fiscal and external sector statistics. | |
| National accounts: Statistics Indonesia (BPS) disseminates annual and quarterly GDP (QGDP) by economic activity and expenditure components at current prices and in volume terms at 2010 prices regularly. In general, GDP estimates are based on the latest international methodologies following the System of National Accounts 2008. The QGDP estimates are based on a limited set of indirect indicators. Some sectors are influenced strongly by seasonality, with seasonally adjusted data prepared but not published. BPS has been leading the work on developing sectoral accounts and balance sheets jointly with Bank Indonesia (BI) with TA from STA. BPS and BI expect to finalize the provisional data for the years 2010–2014 by the end of 2019. The next TA mission on Sectoral Accounts will be conducted in August 2019. | |
| Price statistics: Price statistics are broadly adequate for surveillance. The index and weight refence period for PPI is 2010. In October 2013, BPS released the new Producer Price Index (PPI) covering agriculture, mining and quarrying, and manufacturing, and has published the PPI index quarterly. BPS has also expanded the mining sample to include oil and natural gas extraction, coal, and gold, and has started work to further expand PPI coverage to include 15 service industries. Currently PPI for the following service industries are disseminated: electricity, water and gas; passenger transport; hotel and restaurants. There is a need to increase dissemination frequency and update the weights for the PPI. The index and weight reference period for CPI is 2012. A recent STA TA mission assisted with improving the CPI methodology and updating weights using the results of the 2018 household expenditure survey (Survei Biaya Hidup) . The new CPI is expected from the August 2019 index. STA is assisting Bank Indonesia to develop an enhanced RPPI using Big Data on property listings. | |
| Government finance statistics (GFS): The Ministry of Finance (MOF) is committed to keeping the requirements of fiscal statistics at the forefront of ongoing fiscal reforms, with better statistical monitoring one of the goals of the current efforts. The authorities are continuing their efforts to adopt the GFSM 2001/2014 standards, with assistance from STA as part of a regional GFS project. Significant progress has been made in these areas and, Indonesia now reports to STA annual general government data (including balance sheet data) covering the period from 2008 onwards. Annual general government GFS are currently available 12 months after the end of the reference period and these data are published on the GFS website: http://www.gfs.djpbn.kemenkeu.go.id/en. The timeliness of the annual data will improve once all systems are in place. Aggregated monthly data on the budget of the central government are available with a one-month lag. | |
| In late 2015, the authorities have started to compile quarterly general government data based on estimates of local government data. Quarterly general government GFS (operations statement) are available 6 months after the end of the reference quarter. The quarterly general government data are yet to be published on the GFS website because the authorities are improving these data in terms of coverage of local governments and timeliness with the development of new regional financial information system. Limited quarterly general government GFS data are published in IFS. The coverage and timeliness of public debt statistics are generally adequate. | |
| Monetary and financial statistics (MFS) and financial soundness indicators (FSIs): Good quality monetary statistics are compiled by BI on a timely basis. BI compiles and reports monetary data using the Standardized Report Forms (SRFs), from which an integrated database and alternative presentations of monetary statistics can be drawn to meet the needs of BI and the IMF. Additional challenges include timely revisions of published banking sector data after supervisory verification. With the support of a Fund TA mission in October 2014, BI expanded the coverage of the OFCs survey, which since January 2015 includes finance companies, insurance companies, pension funds, the state-owned pawn shop (PT Pegadaian), and the Indonesian export financing institution (Eximbank); achieving almost full coverage of the subsector. OFC data are reported on a monthly basis. The mission also assisted BI in advancing the production of flow-based monetary statistics and quarterly financial accounts. BI compiles and reports to the Fund all (12) core and 12 encouraged financial soundness indicators (FSIs) for deposit takers, all (two) encouraged FSIs for OFCs, two encouraged FSIs for nonfinancial corporations, one encouraged FSI for households, two encouraged FSIs for market liquidity, and three encouraged FSIs for the real estate sector, which are published quarterly on the Fund’s FSI website. Indonesia reports data on some key series and indicators of the Financial Access Survey (FAS), including mobile money and the two indicators adopted by the UN to monitor Target 8.10 of the Sustainable Development Goals (SDGs). | |
| External sector statistics (ESS): Trade data have been improved in recent years. Import and export transactions of free trade zones and bonded warehouses are captured in goods data of balance of payments (BOP) statistics. For financial account, the methodological basis for the compilation of direct investment (DI) data needs substantial improvement. Inflows are currently calculated based on loan disbursements to companies that have foreign equity using a fixed ratio to estimate equity inflows. The errors and omissions in BOP has been large and predominantly negative and could be related to the under coverage of imports in current account or assets in the financial account. Financial transactions data are reconciled with changes in the international investment position (IIP), except data on DI. IIP data are compiled and published annually and quarterly. External debt statistics have improved considerably with the introduction of an External Debt Information System (EDIS) in 2002 and the recent initiative to publish monthly indicators. Also, as a result of the ongoing reconciliation of data conducted by BI, the IIP and external debt data are fully consistent. However, improvements are still needed with respect to components of private corporate sector data, particularly in distinguishing between scheduled and actual debt service, in estimating the accumulation/reduction of private sector payments arrears, and in estimating reschedulings/debt reductions received by the private sector from external creditors. | |
| II. Data Standards and Quality | |
| Indonesia has subscribed to the Special Data Dissemination Standard (SDDS) since September 1996, observing most of the SDDS requirements. Indonesia uses the SDDS flexibility options for the timeliness of the labor market categories (employment, unemployment, and wages/earnings) and general government operations. | Data Reports on the Observance of Standards and Codes (ROSC) was completed in 2005. |
Indonesia: Table of Common Indicators Required for Surveillance
(As of May 10, 2019)
Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); NA: Not Available.
Reflects the assessment provided in the data ROSC published on July 20, 2005 (based on the findings of the mission that took place during March 28-April 11, 2005), for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Including currency and maturity composition, except referring to international standards concerning source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
Including currency and maturity composition.
Includes external gross financial assets and liability positions vis-à-vis nonresidents.
Indonesia: Table of Common Indicators Required for Surveillance
(As of May 10, 2019)
| Date of Latest Observation | Date Received | Frequency of Data1 | Frequency of Reporting1 | Frequency of Publication1 | Memorandum Items: | ||
|---|---|---|---|---|---|---|---|
| Data Quality— Methodological Soundness2 | Data Quality—Accuracy and Reliability3 | ||||||
| Exchange rates | 5/10/19 | 5/10/19 | D | D | D | ||
| International reserve assets and reserve liabilities of the monetary authorities4 | 4/19 | 5/19 | M | M | M | ||
| Reserve/base money | 4/19 | 5/19 | W/M | W/M | W/M | O, LO, O, O | LO, O, O, LO, O |
| Broad money | 3/19 | 5/19 | M | M | M | ||
| Central bank balance sheet | 4/19 | 5/19 | M | M | M | ||
| Consolidated balance sheet of the banking system | 3/19 | 4/19 | M | M | M | ||
| Interest rates5 | 5/10/19 | 5/10/19 | D | D | D | ||
| Consumer price index | 4/19 | 5/19 | M | M | M | ||
| Revenue, expenditure, balance and composition of financing6— central government | 4/19 | 5/19 | M | M | Mid-year | LNO, LNO, LO, LNO | LNO, LO, LO, LO, LNO |
| Stocks of central government and central government–guaranteed debt | 3/19 | 5/19 | Q | Q | Q | ||
| External current account balance | Q1/19 | 5/19 | Q | Q | Q | LO, LO, LO, LO | LO, O, LO, O, O |
| Exports and imports of goods and services | Q1/19 | 5/19 | Q | Q | Q | ||
| GDP/GNP | Q1/19 | 5/19 | Q | Q | Q | LO, LO, O, LO | LO, LO, LO, LO, LNO |
| Gross external debt7 | Q4/18 | 4/19 | Q | Q | Q | ||
| International investment position8 | Q4/18 | 4/19 | Q | Q | Q | ||
Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); NA: Not Available.
Reflects the assessment provided in the data ROSC published on July 20, 2005 (based on the findings of the mission that took place during March 28-April 11, 2005), for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Including currency and maturity composition, except referring to international standards concerning source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
Including currency and maturity composition.
Includes external gross financial assets and liability positions vis-à-vis nonresidents.
Indonesia: Table of Common Indicators Required for Surveillance
(As of May 10, 2019)
| Date of Latest Observation | Date Received | Frequency of Data1 | Frequency of Reporting1 | Frequency of Publication1 | Memorandum Items: | ||
|---|---|---|---|---|---|---|---|
| Data Quality— Methodological Soundness2 | Data Quality—Accuracy and Reliability3 | ||||||
| Exchange rates | 5/10/19 | 5/10/19 | D | D | D | ||
| International reserve assets and reserve liabilities of the monetary authorities4 | 4/19 | 5/19 | M | M | M | ||
| Reserve/base money | 4/19 | 5/19 | W/M | W/M | W/M | O, LO, O, O | LO, O, O, LO, O |
| Broad money | 3/19 | 5/19 | M | M | M | ||
| Central bank balance sheet | 4/19 | 5/19 | M | M | M | ||
| Consolidated balance sheet of the banking system | 3/19 | 4/19 | M | M | M | ||
| Interest rates5 | 5/10/19 | 5/10/19 | D | D | D | ||
| Consumer price index | 4/19 | 5/19 | M | M | M | ||
| Revenue, expenditure, balance and composition of financing6— central government | 4/19 | 5/19 | M | M | Mid-year | LNO, LNO, LO, LNO | LNO, LO, LO, LO, LNO |
| Stocks of central government and central government–guaranteed debt | 3/19 | 5/19 | Q | Q | Q | ||
| External current account balance | Q1/19 | 5/19 | Q | Q | Q | LO, LO, LO, LO | LO, O, LO, O, O |
| Exports and imports of goods and services | Q1/19 | 5/19 | Q | Q | Q | ||
| GDP/GNP | Q1/19 | 5/19 | Q | Q | Q | LO, LO, O, LO | LO, LO, LO, LO, LNO |
| Gross external debt7 | Q4/18 | 4/19 | Q | Q | Q | ||
| International investment position8 | Q4/18 | 4/19 | Q | Q | Q | ||
Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); NA: Not Available.
Reflects the assessment provided in the data ROSC published on July 20, 2005 (based on the findings of the mission that took place during March 28-April 11, 2005), for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Including currency and maturity composition, except referring to international standards concerning source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
Including currency and maturity composition.
Includes external gross financial assets and liability positions vis-à-vis nonresidents.