(v)  an Exchange Rate Mechanism (ERM) has been put in place since April 2002 to enhance macroeconomic convergence. (vi)  a decision has been taken to adopt a market-based monetary management strategy under the unified monetary and exchange rate policy regime in the sub-region.
Indonesia is convincingly in an era of structurally lower inflation, in my view. This was evidently reflected from the trajectory of Consumer Price Inflation (CPI) which have been converging towards Core Inflation. 18. The stability over growth strategy demonstrated in monetary policy tightening since mid-2013, fuel subsidy reform, and greater exchange rate flexibility, have helped improve the external position.