Potential capital inflows in the form of foreign direct investment are predicted to come gradually in the second semester of 2005, albeit still low. Moreover, non oil-gas exports are predicted to be stronger, consistent with the favorable conditions in the international economy, a competitive exchange rate for the Rupiah, and increasing access to international trade financing.
The good progress of Indonesian trade financing is expected to be better in 2005 due to the improvements in macro condition, banking performance, and higher international confidence. This positive progress of trade financing is reflected by increasing number of credit line provided by foreign banks, decreasing cost of trade financing and increasing trade finance facility from domestic banks to private sector.