During the 'taper tantrum' in mid-2013, the prolonged weak performance of the global economy and uncertainties in the global financial market created risks for many economies. Weak global demand together with the downward trend of the commodity market put pressure on some countries’ current account deficit, slowed growth projections, increased inflation pressure, or brought about a combination of these three.
In Indonesia’s case, thanks to the concerted efforts of the Ministry of Finance, the central bank and the financial service authorities, the economy was able to survive the 2013 turbulence quite well. At that time, we worked very hard to manage external pressures so that they would not strain our economic potential further. Several key policies were introduced to achieve this, including a subsidised fuel price adjustment, a more accommodative policy by the central bank, and tax breaks to certain industries.
