QUARTERLY ANALYSIS: THE DYNAMICS OF MONETARY, BANKING AND PAYMENT SYSTEM, QUARTERLY II, 2013

The national economy showed lower growth than the first quarter of 2013 due to the impact of the global economic slowdown and rising inflation in the country. After registering a growth of 6.0% (yoy) in the first quarter of 2013, Indonesia’s economic growth slowed to 5.8% (yoy) in the second quarter of 2013. Despite positive growth, exports are still not strong enough to support economic growth as a result of the weakening global economic demand. Exports are not strong and the weakening purchasing power due to inflation has increasing influence to slowdown household consumption as well as non-construction investment

QUARTERLY ANALYSIS: The Progress of Monetary, Banking and Payment System Quarter 3, 2009

The development of global economy, which tends to recover, has provided good impacts to the domestic economy. Indonesia»s economy has potentials to grow better than the early estimate, both for the year of 2009 and for the year of 2010.In 2009, Indonesia»s economy was estimated to grow 4.0-4.5%, or higher than the previous estimate, which was 3.5-4.0%. Meanwhile, for 2010, the economic growth is estimated to reach 5.0-5.5%

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 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 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 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 Quarter II – 2012

During the increasing uncertainty of the global economy, Indonesia is still able to grow by 6.4% (yoy). The main source of the economic growth is domestic demands, which are the increasing household consumptions and investments. The high household consumption is in accordance with the consumers’ confidence and stable consumers’ purchasing power, as indicated from the high sales of retailer. The high consumption and conducive business climate lead to the increase of investment. This condition is supported by business agents’ optimism. Meanwhile, the export growth slowed rapidly as the impact of the slowing down global economy that leads to decreasing demand of the main trading partner country and the low price of commodities. On the other hand, import increase along with the increase of investment activities, particularly machinery and conveyance equipment investment. In the future, the prospect of Indonesian economy would remain strong by 6.3-6.7% in 2012; even several factors of risk should be monitored

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, 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