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BANK INDONESIA CONFIDENT INFLATION WILL REACH PROJECTED RATE.

AsiaPulse News

| May 01, 2003 | COPYRIGHT 2003 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

JAKARTA, May 1 Asia Pulse - A deputy governor of Bank Indonesia expressed optimism yesterday that the country's inflation rate could reach 9 per cent as originally projected.

Stating the reason for her optimism, Miranda Goeltom, deputy governor of Bank Indonesia, said demand was still low while world inflation had declined.

At a meeting with the budget committee of the House of Representatives, she said next year's inflation was expected to reach eight per cent in line with plans to cut it to six or seven per cent by 2006.

Gultom also predicted the target of the rupiah exchange rate which had been set at Rp9,000 per dollar would also be reached considering that it had remained stable so far.

In 2004, however, she said the rupiah exchange rate would face a lot of pressures from the balance of payments following ...

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