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%