"Positive development in the balance of payments sustained rupiah stability since late September. At the same time the micro structure of foreign exchange market improved," BI Governor Agus Martowardojo said.Jakarta (ANTARA News) - Bank Indonesia (BI) said a series of its policies issued recently have been effective in driving the countrys economy.
"It is not an exaggeration to say that the policies adopted by BI and the government began to show positive contribution," BI Governor Agus Martowardojo said in a Bankers Dinner here on Thursday evening.
Agus said amid economic slowdown the countrys trade deficit narrowed in the third quarter of this year and foreign capital inflows are growing.
"Positive development in the balance of payments sustained rupiah stability since late September. At the same time the micro structure of foreign exchange market improved," he said.
He said the volume of inter-bank transactions has increased and the process of price discovery is healthier.
In addition, inflation that rose following the subsidized oil fuel price hike began to decline, he said.
"Inflation is strong only in goods with administered prices and volatile foods. The core inflation has remained below 5 percent," he said.
He predicted the countrys inflation would be slightly below 9 percent in 2013.
Bank Indonesia has raise its benchmark interest rate (BI rate) by 175 basis points in the period of June-November to 7.5 percent.
He said he appreciated a series of policies issued by the government over the past three years.
"The policy raising the prices of subsidized oil fuels in June 2013 has reduced fiscal pressure although not enough to strengthen the countrys current account posture," he said.(*)
Editor: Heru Purwanto
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