Impact of global crisis to be felt in 2012: BI

Impact of global crisis to be felt in 2012: BI

(ANTARA/Rosa Panggabean)

Jakarta (ANTARA News) - Bank Indonesia (BI or the central bank) believes Indonesia will begin to feel the impact of the current global crisis only in 2012, a spokesman said.

Perry Warjiyo, director of BI`s directorate of economic research and monetary policies, said here on Tuesday the impact of the global crisis was actually already being felt in the financial sector but not as yet in the real sector.

He said the global economic slowdown would certainly affect Indonesia but it would be felt stronger next year.

"BI predicts our economy will grow 6.5 percent this year. We have revised it down from initially 6.6 percent," he said.

BI meanwhile has also revised down its prediction for 2012 from 6.7 percent to 6.5 percent.

Perry saw several sectors would support the country`s economic growth such as trade, telecommunication and natural resources.

Until the third quarter of 2011 there has been an outflow of capital totaling US$4.7 billion from shares, bonds and state securities.

Perry however believed in the fourt quarter capital would flow in again through "foreign direct investment."

He said total foreign direct investment last year reached US$13.3 billion and until the third quarter of 2011 it had been recorded at US$14.7 billion.

"By the end of 2011 BI predicts total foreign direct investment will reach US$16 billion," he said.

BI lso believes the country`s rupiah currency would also remain stable with the inflation rate by the end of this year predicted to reach 4.0 percent while next year`s rate at 4.7 percent.