However the recent increase of the volatile food price is expected to be temporary and inflation is expected to be maintained within target range of 5% +/– 1% in 2010 and 2011. The core inflation figure is also supportive to Bank Indonesia inflation assessment.
To this respect, the latest monetary policy decision to keep BI Rate at 6.50%, is considered as adequate to ensure the inflation expectation within the target range and supportive to maintain the growth momentum, as well as to encourage bank lending. Meanwhile, the balance of payment figure shows a strong indication of improvement, brought about by strong domestic economic fundamental and conducive global economy.