That higher domestic demand leading to increased imports, as well as some spill over effect due to external factors have also indirectly affected exchange rate fluctuations in 2004, which depreciated around 3.7% to reach on average Rp8.934 per USD in 2004.
In line with this, inflation rate went up slowly since January from 4.82% (y-o-y) to 6.4% (y-o-y) at the end of 2004, which is still in the central bank inflation target range of 5.5% +/- 1%. Ladies and gentlemen,  Macroeconomic outlook for 2005 The above macroeconomic conditions inevitably underlie the brighter economic performance in the near future.