Fiscal Study

Bank Indonesia (BI) Senior Deputy Governor Miranda S Goeltom said the country`s inflation rate in 2008 would show a downward trend and was expected to drop to below this year`s figure, ANTARA News reports:
"Inflation next year will be lower than this year when the figure is estimated to range between 6.33 percent and 6.7 percent," according to Miranda.
She said BI`s studies on next year`s inflation rate had used pessimistic assumptions such as high oil and commodity prices.

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Bank Indonesia said its consumer confidence index dropped to 95.8 in June from 98.5 in May, reflecting pessimism about the economy in the next six months among respondents to the central bank's monthly survey, ANTARA News reports:

BI was quoted by Thomson Financial as saying there was a decline in the number of respondents who were confident that their income will rise in the next six months.

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Posted by fiscalstudy at 1:47 AM | Permalink | Comments (0)

The Indonesian economy is likely to expand 6 percent in the first half of 2007, or lower than the government-set target of 6.3 percent, according to a minister, ANTARA News reports:

The government foresaw that the economy would fall short of the target as household consumption would grow 4-4.5 percent, investment 9 percent and government spending 10-11 percent, Finance Minister Sri Mulyani said after a cabinet meeting on the revised 2007 state budget at the Presidential Office here.
"Some variables of macro economic assumptions in the first half of 2007 have been changed," she said. The variables included inflation rate which had been changed to 6 percent from 6.5 percent, the rupiah`s exchange rate against the dollar to Rp8,970 from Rp9,300 per dollar, interest on three-month Bank Indonesia certificates (SBI) to 8 percent from 8.5 percent, and oil price to US$61.4 from US$63 per barrel, she said.

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Posted by fiscalstudy at 2:10 AM | Permalink | Comments (0)

Bank Indonesia is expected to trim its benchmark interest rate a further 25 basis points to 8.50 pct at tomorrow's policy meeting, with May's relatively benign inflation report and a strong rupiah giving it leeway to continue its long cycle of reductions, most economists surveyed by XFN Asia, ANTARA News reports:

However two of those polled said they expect the central bank to sit pat, amid concerns that consumer inflation is likely to pick up this month and next.
The bank has trimmed its benchmark BI rate by a cumulative 400 bps since May last year and it currently stands at 8.75 pct.

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Posted by fiscalstudy at 10:56 AM | Permalink | Comments (0)

Indonesian President Susilo Bambang Yudhoyono offered Malaysian businessmen wider, fairer and mutually beneficial cooperation, ANTARA News reports:

He made the offer at a meeting with dozens of Malaysian businessmen grouped in the Malaysia-Indonesia Business Council, which was also attended by Indonesian businessmen.
On the occasion the president also conveyed his Indonesia`s appreciation to Malaysian businessmen who had made a contribution to the Indonesian economic development.

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Posted by fiscalstudy at 6:24 AM | Permalink | Comments (0)

Indonesia`s trade with China has experienced positive growth with its value having increased at an annual average rate of 18.6 percent in the past five years (2001-2006), according to an Indonesian diplomat, ANTARA News reports:

Mohammad Oemar, deputy chief of mission at the Indonesian Embassy in Beijing, said Indonesia`s primary exports to China so far were chemical substances, timber products, pulp and paper, rubber and fertilizers.
In the meantime, Indonesia`s imports from China included semi-finished iron and steel products, spareparts, machines, electronics, data processing machines and various kinds of fruit.
Oemar said currently China was the fifth biggest export destination for Indonesian goods and the third biggest source of Indonesia`s imports.

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Posted by fiscalstudy at 2:46 AM | Permalink | Comments (0)