Thank you to Elliot for this interesting article on how the Indonesian government is trying to achieve certain objectives at the expense of others.
You will no doubt be aware that the main govt objectives are:
Low Inflation (Stable prices)
Low Unemployment
Sustainable Economic Growth
Healthy Balance of Trade
Strong Government fiscal position.
Governments will put certain objectives before others depending on circumstances. It ios clear that the Indonesian government (much like most of the developed world in recent years) are putting stable govt finances as a priority this year.
The question you would be asked to look at could be:
How will this policy affect the economy both in the short and the long run?
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