JAKARTA (Yosefardi) – Central bank, Bank Indonesia (BI), decided to maintain BI Rate at 6.5%, to support its policies on inflation control, sustainability of balance payment and stability of financial system.
BI targets inflation to reach 4.5% plus/minus 1% in 2014.
BI however still concerns on global economic slowdown, which then impact on increasing inflation in the country. Indonesian economy grew by 5.8% year-on-year in second quarter of this year, slower from 6% in first quarter.
But overall, BI expects domestic economy to grow by 5.8-6.2% this year and reach 6.4-6.8% in 2014.
Foreign exchange reserves reached US$92.67 billion as of July 2013, equivalent to 5.2 months of import and government’s foreign debt payment. This figure is the lowest since November 2010.
The rupiah weakened 1.95% (month-on-month) against the US Dollar in July, compared to Rp10,071 in previous month.
For banking sector, loan growth declined to 20.6% in June 2013, from 21% in May 2013.