Bulletin of Monetary Economics and Banking

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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%.

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