BI will also effectively commence the Domestic Non-Deliverable Forwards (DNDF) on Nov 1, 2018, BI Executive Director for Communications Agusman said in a statement received here on Saturday.
BI is always strengthening policy in coordination with the government and other relevant authorities in order to maintain economic stability and reinforce external resilience, including stimulating exports and lowering imports, which will reduce the current account deficit to 2.5 percent of GDP projected in 2019.
Moving forward, BI will monitor prevailing economic developments, such as the current account deficit, exchange rates, financial system stability, and inflation, as follow-up measures to maintain macroeconomic and financial system stability.
As predicted, the global economic growth projection has been downgraded, accompanied by a high global financial market uncertainty.
On one hand, the US economy is expected to strengthen on the back of solid domestic demand, thus raising inflation expectations and prompting the US Federal Reserve to implement further policy rate hikes.
On the other hand, however, economic growth in Europe and emerging markets, including China, is expected to be lower than previously projected and, in turn, impeded the global economic outlook.
In addition, escalating trade tensions between the United States and several trading partners is constraining world trade volume and, therefore, affecting the global economic outlook.
Export prices from Indonesia are rising more slowly despite the persistent upward global oil price trend.
Meanwhile, the ubiquitous uncertainty blighting global financial markets is pushing investors towards safer assets, particularly in the US.
The current spell of global headwinds has precipitated broad US dollar appreciation, thus perpetuating currency depreciation in the developing countries, up until mid-October 2018.
Reporting by Azis Kurmala
Editing by Suharto