"In the first quarter of 2012 the economic growth is expected to reach 6.5 percent supported by investment and household consumption which would remain strong while overall in 2012 the domestic economic growth would reach 6.3 to 6.7 percent and to accelerate to 6.4 o 6.8 percent in 2013," the central bank`s governor Darmin Nasution said here on Thursday after a board of governors meeting.
BI`s board of governors viewed global economic and financial performance would continue to be weak as crisis in Europe would still continue leading to stagnation in the consumption in advanced countries and a decline in the global export performance and financial markets. Liquidity is also expected to be tight with risks to increase and ratings in a number of countries in Europe feared to be downgraded.
According to Darmin the country`s economic growth in 2011 is expected to reach 6.5 percent.
"In terms of balance of payment Indonesia in 2011 recorded a surplus despite pressures in the fourth quarter due to increasing imports at the end of the year. However foreign exchange reserves until December reached US$110.1 billion which was an equal for 6.3 months of imports and government foreign debt payment," he said.
BI recorded the rupiah appreciated 3.56 percent in 2011 from the average of 2010. Depreciation happened at the end of the year because of increasing demand for foreign currencies to meet the domestic need for imports and paying debts.
"Demand for foreign currencies occurred because of demand to pay the private debts due in November-December 2011 reaching US$1.6 billion which was increasing compared with the demand in other months at US$600 million and this was normal," he said.
What needs to be monitored is, Darmin said, if the exchange rate of the rupiah and the value of other currencies in the region is all depreciated.
The rate of inflation in 2011 reached 3.79 percent meaning it dropped from 2010 when it reached 6.96 percent while in 2012 and 2013 it is expected to reach 6.96 percent. BI set the rate for 2011 at 3.5 to 5.5 percent.
Indonesian banking industry has been considered stable shown by the capital adequacy ratio that reaches far above the minimum level of 8.0 percent while the non-performing loan is recorded below five percent with improving credit growth at 26 percent until the end of November 2011.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
