Inflation is predicted to remain low in the range of 1.5-3.5%, supported by increases in national production capacity through higher efficiency and productivity to meet rising aggregate demand in the economy. The current account deficit is also predicted to remain manageable at a low level, thereby underpinning the resilience of Indonesia’s external sector.
For a variety of reasons, this question has proved difficult to answer: Some researchers have found that separating liabilities from assets helps to explain variations in consumption over time; others have not.