Indonesia: Economic and Social Update


The World Bank, October 2006

By Mid 2006 Indonesia was showing signs of a solid recovery from the dramatic fiscal and monetary policy adjustments in late 2005 which slowed the economy in the first half of 2006 and increased poverty. Unfortunately this year’s economic slowdown was also accompanied by additional natural disasters. On a more positive note, reconstruction in Aceh and Nias is now well underway, with thousands of houses built and more under construction.

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