JAKARTA (Indonesia Today) – Governor board of Bank Indonesia (BI) today decided to maintain BI Rate at 5.75% for eight consecutive months as inflation is considered remain low and under control.
“BI Rate is considered still consistent with inflation pressure and its target of 4.5% plus minus 1% in 2012 and 2013,” BI said in press statement.
BI views that the external balance has so far shown the improving current account deficit, better than the expectation, but BI is concerning over the pressure on current account mainly caused by risk of global economic slowdown.
BI said the domestic economy is still growing on its capacity on the back of high consumption and investment.
BI recorded foreign exchange reserves of US$109 billion by end of August 2012, equivalent 5.9 months of import and government’s foreign debt payment.
The rupiah, with lower pressure, depreciated 0.63% (mtm) to Rp9,493 against the US Dollar.
Banking industry is remain strong with capital adequacy ratio (CAR) standing far above minimum CAR of 8% and lower non performing loan (NPL), below maximum 5%. Loan grew 25.2% (yoy) by end of July 2012. (hans@theindonesiatoday.com)