Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Economy  >>   WB asks Indonesia to be wary of China slowdown
NEWS UPDATES Asean Affairs    18 October 2012 

WB asks Indonesia to be wary of China slowdown


The World Bank says Indonesia's economy will remain resilient against threats posed by stalling economic recovery in the US and Europe, but warned policymakers in the country to monitor economic developments in China, the potential economic slowdown of which could have more "negative spill over" effects for the archipelago.

A 1 per cent economic slowdown in China may decelerate Indonesia's economic expansion by up to a half a per cent, the Washington-based institution noted in its October report released yesterday, titled "Indonesia Economic Quarterly: Maintaining Resilience".

The report forecasts that Indonesia's economy will expand to 6.1 per cent this year and 6.3 per cent next year, but warned the country over "downside external risks", especially those stemming from China's economy, which could push down Indonesia's growth to just below 5 per cent in 2013.


Read the rest of the Story below...


First time outside China and first time in Bangkok: A Multi-Billion$ industry event
The 7th Railworld Summit 2012, Oct 24-26, 2012. The Dusit Thani hotel, Bangkok, Thailand

China’s leading event organizer CDMC (China Decision Makers Consultancy) and AABC (AseanAffairs Business Council) – the business platform of C.I.A. (China-India-Asean) and AseanAffairs- the only global media dedicated to SE Asia brings to Bangkok and Asean for the first time, the prestigious Rail World Summit 2012 to be held for the seventh time and first time outside China.

Southeast Asia is one of the most dynamic, fast-growing regions in the world today. It offers a market of 590 million people, rich natural resources, skilled labor, and an export industry concentrated in global high-growth sectors – all tied together in a free-trade area, ASEAN.

This year’s event will enter a new chapter in Bangkok, Thailand, 24th-26th October. The three-day summit will address the most critical industry issues in Southeast Asia and globally and will draw attendees from government, railway authorities, projects, equipment and technology companies, aiming to help to gauge the pulse of this dynamic industry and get caught up with the most cutting edge railway technologies.

The market for rail technology in Southeast Asia currently has a volume of approximately EUR 1.8 billion. The market will grow at a significantly higher level than other regions. We expect growth of 6% per year to around EUR 2.4 billion in 2016. Though the region makes up only a small share of market volume for railway technology in Asia compared to China, India and Japan, the region is very interesting for international players due to its relative openness and low local competition.

The summit has been extended to feature a post-congress full-day site tour on the third day, which is a tailor-made site visit with high-end reception designed to witness the remarkable advancement of industry facilities, and will leave with practical skills and new contacts.

The conference will draw over 270 participants, bringing together with government and association, railway authorities, metro/LRT operators, project owners, planning & design institutes, equipment & technology vendor and IT solution companies.

Some of the confirmed companies
from Europe, USA, China, India, Japan, Korea, Cambodia, Thailand, Indonesia, Malaysia......Beijing Subway Operation Co., Ltd,  Siemens, Chongqing Rail Transit Corporation, AEG Brazilian National Agency for Land Transport, Rutherford Global Power, China Railway Group Limited,  Balfour Beatty Rail,  Shanghai Shentong Metro Co., Ltd, Ministry of Railways P.R.C., ADB ,Knorr-Bremse SfS GmbH, Indian Railways, Beijing-Shanghai High-Speed Railway Co., Ltd, Bayer Materials, Korea Rail Networks Authority, GE Transportation,  BAE Systems, ABB Ashurst, EAO Zoller + Fröhlich GmbH, Kawasaki Heavy Industries Ltd.,Rockwell  Hitachi Cable, Nexans WaveTrain Systems, Itochu, Cisco   RZD ZOOMLION Komatsu, Halfen Rail Innovation Australia Pty Ltd, MAHLE Behr Industry Cooling Equipment (Tianjin) Co., Ltd.  Böhler Uddeholm, MITSUBISHI ELECTRIC CORPORATION, Rogers (Shanghai)

International Trading Co., Ltd. Freshfields Bruckhaus Deringer TOLL, Royal Cambodia railways, Nanjing Metro, Delhi Metro Rail Corporation,Konkan Railway Corporation Ltd. , Beijing Dinghan Tech Co., Ltd. , HOPPECKE Battery System GmbH, Crane Aerospace, CSM ERL Maintenance Support Sdn Bhd, Metrosolution Zublin, Mitsui & Co., Ltd., Fuji Electric, Voestalpine BWG GmbH & Co.KG, MRT Jakarta,  TUV Rhainland, Beijing General Municipal Engineering R & D Institute,  Guangshen Railway Co., Ltd   MOOG   Centro Sviluppo Materiali SpA Ashida ELECTRONICS (P) LTD. ,Technical Expert Network, UBM, Jindal Steel, Herbert Smith Bureau Veritas, China Railway 23rd Bureau Group Co.,Ltd. Bangkok Metro, Bangkok Metropolitan Authority, Land Public Transport Commission (SPAD, Malaysia).

Hurry! Seats are Limited! Receive discounts on Individual & multiple bookings before 5 Oct 2012.
Email to request for Delegate Registration Form, Agenda, Sponsor Prospectus.

Or Register at:

"Why China? Because it has very strong impact on Indonesia's economy, both directly and indirectly," said Ndiame Diop, World Bank economic advisor for Indonesia.

Diop argued that the direct impact for Indonesia's economy would be felt through the trade channels, as China currently absorbs about 11 per cent of Indonesia's total exports, mostly commodities.

The indirect impact from China's slowdown, meanwhile, would also be felt through investment.

"If China slows down, it is going to be felt in Japan and Korea. They happen to be important sources of FDI [Foreign Direct Investment] to Indonesia," he explained.

China is Indonesia's biggest trading partner, with total trade between the two countries amounting to US$60.5 billion last year, according to data from the Chinese Embassy in Indonesia.

China, the world's second-largest economy, is currently feeling the pinch of weakening global demand, recording its slowest economic growth in three years of 7.6 per cent in the second quarter of this year.

The World Bank this month chopped its economic growth forecast for China to 7.7 per cent from its earlier prediction of 8.2 per cent as the world's second-largest economy heads for a "soft landing" due to its heavy reliance on exports.

Indonesia must be prepared for policies in anticipation of China's slowdown as there were "no signs of the business cycle turning" in China at the moment, according to Diop.

The World Bank also suggested that Southeast Asia's largest economy improve the quality of both the allocation and the efficiency of spending, especially considering the tough external challenges that the country would face in the future.

The World Bank advised Indonesia to maintain policy consistency and clarity, particularly in the area of business and investment regulation, and recommended policymakers in the country to avoid any "policy missteps", meaning policies that were implemented to address a near-term issue but actually carried longer-term risks and costs.

Among the Indonesian government policies highlighted by the World Bank is excessive spending on fuel subsidies, which it argued limited Indonesia's flexibility to respond to any external risks that could cause downturns in growth.

"Fuel subsidies aren't good, they use up a lot of fiscal resources," World Bank sector manager for poverty reduction Jim Brumby said yesterday.

"And they aren't pro-poor, because the benefits go to the people who use cars."

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    23 October 2012   Subsribe Now !
• Asean+6 to launch world's biggest free-trade market  Subcribe: Asean Affairs Global Magazine
• Chinese manufacturing relocating to Asean due to costs Asean Affairs Premium
• Bumi Plc break up showcase weak corporate governance in Indonesia
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• EU travelers decline prompts Indonesia to focus on Asean, Asia
• US Rice Federation fears rice dumping by Thailand
• Singapore wins as Asia's top MICE destination
• Bank of Thailand opts for rate cut to shore up economy
• Philippine companies scouting Vietnam for business  
Asean Analysis              23 October 2012
Advertise Your Brand
• Asean Analysis- October 23, 2012  
• Asean Weekly- October 13, 2012 Sponsor Our Events

Asean Stock Watch     23 October 2012 

• Asean Stock Watch- October 23, 2012

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand