Bulletin of Monetary Economics and Banking

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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.

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