Excess liquidity, disharmony between strategy and policy implementation, and the lack of economic infrastructure resilience towards external shocks are among the risks potentials our economic stability must face. This vulnerability became apparent in the second semester of 2005. Global financial imbalances, increases in world oil prices, and hikes in domestic fuel prices in October were followed by an increase in inflation (17.11%) in 2005.
The Rupiah depreciated by 8.5% and the Balance of Payments showed a deficit of USD 778 million. This contrasts with 2004’s surplus of USD 309 million. The World  BIS Review 1/2006  1  Economic Forum stated that Indonesia’s competitiveness slipped from 69th position in 2004 to 74th in 2005. This position placed Indonesia in a rung lower than Vietnam.