Indonesia’s economy has posted robust growth in 2008 and one of the rare countries which successfully posted a positive growth rate in 2009, navigating through the global financial turmoil and economic slowdown. GDP growth, in excess of 6% in 2008, reached 4.2% for the first nine months of 2009. In preliminary figures for 2009, the economy charted fairly vigorous growth at 4.3% (yoy) and it is projected at 5.5% in 2010.
- Banking industry is in stable condition with high level of CAR (17%) and comfortably safe level of NPL (gross) at a subdued level below 5% (latest data as of November 2009).
- By end of the Q3 - 2009, Indonesia's overall balance of payments recorded a surplus of US$ 3.5 billion (Q2-2009 : US$1.1billion), resulted from surpluses in both the current account as well as the capital and financial account.
- International reserves reached USD 66.0 billion as of end of December 2009, equivalent to about 6.58 months of imports and official external debt payment.
- In 2009, Rupiah has been showing an appreciation trend, mainly supported by continuing of global economic recovery and positive economic performance which outperformed regional economies. Rupiah strengthened from IDR 10,950 against USD as on December 31, 2008 to IDR 9,400 against USD as on December 31, 2009, representing 16.5% appreciation
- The monetary relaxation during 2009 has provided ample support for the economic recovery and bank intermediation processes. At the latest Board of Governors Meeting convened in January 2010, The BI rate decided to be kept at 6.50% after concluding the present level of the BI Rate is consistent with achievement of the 2010 inflation target, set at 5%±1%.
- The Indonesian economy in 2009 has charted remarkably low inflation. In 2009, the Consumer Price Index (CPI) recorded annual inflation at 2.8% (yoy). Inflationary pressure has eased in response to the government decision to lower fuel prices at the beginning of the year, external factors of lower trading partner inflation, appreciation in the exchange rate and softening public expectations of inflation.
- With the target of fiscal deficit 1.6% of GDP in 2010 Budget, fiscal policy is taking into account the need to stimulate the economy and will continue at as lower pace in 2010. Tax policy reform continues with lower tariff and higher compliance.
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