The proposed low inflation rate will help support the development of permanent income, therefore strengthening purchasing power, especially in the middle to low income group. Supported by further improvements in MDG indicators, stronger purchasing power will become more permanent in nature and subsequently broaden the consumption base of the domestic economy.
Provisions and improvements to primary infrastructure, bank credit, adequate energy supply and wider access to entrepreneurship will boost domestic market capacity. This will then become a catalyst for national production capacity expansion through FDI and domestic investment in both the corporate and MSME sectors. A rise in continuous investment will further push Indonesia towards investment grade status. 30  BIS Review 8/2008  IV.