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Indonesia needs to 'get fiscal'

With state coffers down 9.9% in April, sound fiscal policy is critical to boost growth.

Excavation at the construction site for Jakarta's Mass Rapid Transit. Indonesia needs to improve competitiveness in non-commodities to offset the commodity terms-of-trade shock. Ramping up infrastructure spending is one of those ways.

INDONESIA has one of the strongest structural stories in Asean, and we think 2015 likely marked the floor to growth. Our base case for this year is for a mild growth recovery to 5 per cent from 4.8 per cent in 2015. Given the tepid external environment - Morgan Stanley's global economics team