QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter I, 2010

The process of strengthening the domestic economy was continually supported by the conducive global economic performance. Indonesia»s economic activities showed a significant increase in the fourth quarter of 2009. In that quarter, the Indonesian economy grew by 5.4% (yoy), so that in general, the economy grew by 4.5% (yoy) in 2009. These economic conditions continued to show the optimistic atmosphere that support better economic prospects than previously thought. The Indonesian economy in 2010 was expected to reach 5.5% -6.0% and in 2011 reached 6.0% -6.5%. Price stability was still maintained, as reflected in lower CPI growth during the first quarter of 2010. This was in line with the estimates of significant inflationary pressures, which will not appear until at least the first semester of 2010. For the entire year, CPI inflation in 2010 was targeted at the range of 5% ± 1%

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Third Quarter – 2010

The acceleration of economic growth in Indonesia was still continuing and the macroeconomic stability was maintained. Accelerating economic growth was driven by the increased consumption and exports and investment. Consumption was increased by the optimism sparked by consumer confidence, availability of consumption financing and low import prices. Meanwhile, the improved export activity that remained improving was resulted from the strong demands mainly from China and India. The increasing domestic and international demand has resulted in increased investment growth. The Indonesian economy in 2010 was estimated to grow 6.0% -6.3% and in 2011 to reach 6.0% -6.5% range

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter IV - 2011

The Board of Governor Meeting of Bank Indonesia today decided to maintain the BI rate at the level of 6.0%. This decision is based on thoroughly examination on the recent economic performance, several recent risks, and the prospect of the economy. The Board of Governor view the level of BI rate is consistent with the targeted inflation ahead, and is conducive to maintain the financial stability, and also to mitigate the impact of global prospect on Indonesian economy

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter IV – 2010

The economy of Indonesia in 2010 showed a quite high growth acceleration in the middle of the imbalance of global economic recovery. The domestic economy is forecasted to grow 6.1% in the fourth quarter of 2010 that in general, the national economy in 2010 grow about 6%. For 2011 and 2012, Bank Indonesia is optimistic that the recovery of domestic economy will be stronger, supported by the increased domestic demand with a better investment performance. The Indonesian economy in 2011 is forecasted to grow up to 6.0 to 6.5% and in 2012 is predicted to become 6.1 to 6.6%

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter III – 2012

The domestic economy is still growing quite well despite a slight slowdown. Indonesia’s economic growth in the third quarter of 2012 grew by 6.2%, slightly lower than previous forecasts due to a continuing decline in the performance of the external sector. Although consumption and domestic-orientated investment demand remains high, falling exports have resulted in decreased production and export-oriented investment. Looking ahead, economic growth is expected to rise again, driven by domestic consumption and investment which remains strong. Exports are predicted to also improve in line with the improving economy with some major trading partners, though it will still be shadowed by uncertainties in the global economic conditions. With these developments in the Indonesian economy for the entire year of 2012, the economy in 2013 is forecasted to grow 6.3% in rising into the range of 6.3% -6.7%

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Second Quarter – 2010

The Indonesian economy in second quarter of 2010 demonstrated a continued strengthening. This optimism was supported by investment and export performance that grows higher, in line with the global economic recovery. Economic conditions continued to show an atmosphere that supports the optimistic better economic outlook than previously thought. The Indonesian economy in 2010 was estimated to grow towards the upper limit of the range of 5.5% -6.0% and reached 6.0% -6.5% in 2011. In terms of prices, inflationary pressure throughout the second quarter of 2010 showed an increase caused by the volatile foods, such as various spices and rice. Meanwhile, the administered prices group and minimal core inflation contributed to the price development during the second quarter of 2010. Thus, overall the year, CPI inflation in 2010 will still be in the range of the inflation target of 5% ± 1%

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System, First Quarter – 2013

Indonesia’s economy in the first quarter 2013 growth slowed compared to the previous quarter. Economic growth stood at 6.02% (yoy), lower than the previous quarter grew by 6.11% (yoy). A source of slowing growth came from domestic demand amid declining export performance. Slowing growth in household consumption was due to the decrease in purchasing power as a result of an increase in inflationary pressures, especially food. In addition, government consumption growth is relatively low, due to the limited uptake of spending, especially spending on goods. A decline also occurred in investment performance, particularly non-construction that is influenced by limited domestic and international demand outlook. Decline in investment performance is in line with the decline in business optimism. In non-construction investment, there is reduced performance in machinery investment, in line with the slowdown in the imports of capital goods. In contrast, exports showed improvement, supported by strengthening expectations of global economic recovery and rising volume of world trade. Response to slowing domestic demandsaw a contraction in imports. Sources of downward import pressure are from the imports of raw materials and capital goods, mainly raw materials for the industrial and passenger vehicle industry which has seen a slowdown and moderation in response to motor vehicle sales

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter II - 2011

The Board of Governors Meeting (Rapat Dewan Gubernur/RDG) of Bank Indonesia on 12 April 2011 has decided to maintain the BI rate by 6.75%. This decision does not change the direction of Bank Indonesia»s monetary policy which tends to be strict in an effort to control the inflationary pressures that are still high, amid the government efforts to reduce inflationary pressure from volatile foods group. The Board of Governors considered that the strengthening of the rupiah so far can reduce these inflationary pressures, particularly from the rising price of international commodities (imported inflation). In addition, to minimize the negative impact of short-term foreign capital flows on monetary stability and financial system, the Board of Governors also has decided to replace the one-month holding period on SBI to six-month holding period, which shall take effect on May 13, 2011. Looking ahead, Bank Indonesia assessed that the possibility of the BI rate level adjustment is still open to dampen the incoming inflationary pressures. Bank Indonesia believed that the implementation of monetary and macro-prudential policy mix, supported also by the strengthened coordination of government policy, will be able to maintain the macroeconomic stability and bring inflation to the target, which are 5% ± 1% in 2011 and 4.5% ± 1% in 2012

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter III - 2011

The Board of Governor Meeting of Bank Indonesia on October 11, 2011 decided to lower the BI rate by 25 bps to the level of 6.5%. Bank Indonesia will also maintain the stabilization of Rupiah particularly from the impact of global financial market shock. The decision is in line with the inflation expectation of below 5% on current and next year. Furthermore, these policies are meant to anticipate and to mitigate the negative impact of the global economic and financial slowdown on Indonesian economy. Looking ahead, the Board of Governor will continue to evaluate the global economic and financial performance and use the interest rate as well as the mix of monetary and the other micro prudential policies to mitigate the possible slowing down of Indonesian economic performance, especially on achieving the inflation target of 5% + 1% in 2011 and 4.5% + 1% in 2012

QUARTERLY ANALYSIS Monetary, Banking, and Payment System Developments Quarter I – 2014

Indonesia’s economy performed an under-controlled economic stability and was sustained by the economic adjustment in quarter I 2014. During the period, inflation was in the declining trend along with smaller current account deficit. The capital inflow also increased along with the improvement of economic fundamental which in turn contributed to the appreciation of Rupiah’s exchange rate. Accordingly, domestic demand was well-managed, even though the growth performed a sharp decrease and was lower than expected as the impact of real export contraction from mining sector. The development was not apart from the policy consistency taken by Bank Indonesia and the government since the mid 2013 to strengthen the economic stability and managed the growth to run proportionally and sustainably