Opinion | Different strokes: India versus Indonesia4 min read 13 Aug 2018, 11:39 PM IST
Additional monetary tightening is in store for both economies, but the use of interest rates to defend the currency is a bigger risk for Indonesia than India
India and Indonesia experienced positive tectonic political change in their national elections in 2014. The actual delivery by Prime Minister Narendra Modi in India and President Joko Widodo (“Jokowi") in Indonesia has been positive, but less than the hyped-up investor expectations. The two countries are scheduled to have elections in 2019, and an important differentiation between them is inflation: It eased in both countries, but Indonesia is the clear winner.