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73655
Mon, 08/03/2009 - 21:18
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BI TO REMAIN CONSERVATIVE, DARMIN SAYS
Jakarta, Aug 3 (ANTARA) - Bank Indonesia Senior Deputy Governor Darmin Nasution said here on Monday he central bank would remain conservative in assessing present economic developments.
"As a central bank we will remain conservative. The facts are not yet stable as they are only beginning to be," he said in a press conference with Finance Minister Sri Mulyani and National Development Planning Minister Paskah Suzetta to elaborate the president's speech on the 2010 Draft State Budget.
Darmin said there economic improvements had indeed happened but his office would remain alert as the situation had not yet stabilized.
He said conditions had improved as seen from continuing inflows of funds from abroad and the rising index in the stock exchange as well as the appreciation of the country's currency.
The rupiah's exchange rate had appreciated 0.4 percent in the past six months to an average Rp10,040 against the US dollar while the rate in June was recorded at Rp9,990 per US dollar.
Bank Indonesia estimated the country's balance of payment would be in surplus and thus would support the country's foreign exchange reserves which were expected to reach US$58.8 billion at the end of the third quarter which was equivalent to 5.7 months of imports and foreign debt repayment, Darmin said.
He said he believed the government would be able to meet its growth target of five percent as the president had stated in his speech before the plenary session of the House of Representatives this motning, if the government would strive to improve its performance.
He said the country's economic growth was driven by domestic economic expansion as well as strong consumption in addition to signs of improvement in the world's economy. He said the country's economy would also be boosted by exports which had started improving.
Darmin said signs of improvement however had not yet emerged in the investment sector. "I will just say that the potential of economic improvement is not a dream but it has just begun. It is not yet good. If it is really improving it will boost investment," he said.
Darmin said economic improvements in 2010 in the country as well as in the world would also boost inflation because the situation would increase demand that would in turn also increase inflation.
Therefore, he hoped that the government would not only focus on meeting its growth target but also maintain the inflation rate at around five percent. ***
"As a central bank we will remain conservative. The facts are not yet stable as they are only beginning to be," he said in a press conference with Finance Minister Sri Mulyani and National Development Planning Minister Paskah Suzetta to elaborate the president's speech on the 2010 Draft State Budget.
Darmin said there economic improvements had indeed happened but his office would remain alert as the situation had not yet stabilized.
He said conditions had improved as seen from continuing inflows of funds from abroad and the rising index in the stock exchange as well as the appreciation of the country's currency.
The rupiah's exchange rate had appreciated 0.4 percent in the past six months to an average Rp10,040 against the US dollar while the rate in June was recorded at Rp9,990 per US dollar.
Bank Indonesia estimated the country's balance of payment would be in surplus and thus would support the country's foreign exchange reserves which were expected to reach US$58.8 billion at the end of the third quarter which was equivalent to 5.7 months of imports and foreign debt repayment, Darmin said.
He said he believed the government would be able to meet its growth target of five percent as the president had stated in his speech before the plenary session of the House of Representatives this motning, if the government would strive to improve its performance.
He said the country's economic growth was driven by domestic economic expansion as well as strong consumption in addition to signs of improvement in the world's economy. He said the country's economy would also be boosted by exports which had started improving.
Darmin said signs of improvement however had not yet emerged in the investment sector. "I will just say that the potential of economic improvement is not a dream but it has just begun. It is not yet good. If it is really improving it will boost investment," he said.
Darmin said economic improvements in 2010 in the country as well as in the world would also boost inflation because the situation would increase demand that would in turn also increase inflation.
Therefore, he hoped that the government would not only focus on meeting its growth target but also maintain the inflation rate at around five percent. ***
