JAKARTA: Indonesia's economy began to be overshadowed by global economic slowdown which impacted on the external side of the national economy.
Thus, Bank Indonesia (BI) and World Bank cut the country‘s growth forecast 6.0%-6.3%, if the conditions remain as at present. Even if the conditions deteriorate further, the global financial institution estimated that domestic economic growth will only reach 5.7% at the end of 2012.
In anticipation of uncertain economic conditions, Bank Indonesia keeps the interest rate at 5.75%.
BI Governor Darmin Nasution said the impact of the global economy is seen from the decline in export performance. “With the decline in export performance, economic growth in the third quarter of 2012 is expected to grow lower at 6.3% and in the range 6.1%-6.5% by the end of 2012 and 6.3%-6.7% in 2013,” he said Thursday (7/12/2012).
The central bank, Darmin continued, keeps the interest rate at 5.75% as anticipation toward a weakening in global economy. The level is still in line with the inflation forecast for 2012 and 2013, i.e. 4.5% with +/ - 1%. (T06/TW)
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