Indonesia: Eleventh Review Under the Extended Arrangement

Author: International Monetary Fund

Volume/Issue: Volume 2004 Issue 018

Publication date: January 2004

ISBN: 9781451818253

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Topics covered in this book

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Banks and Banking , Inflation , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , ISCR , CR , disinflation effort , SDR , reform effort , GDP , conclusion of the executive board's discussion , debt service , IBRA debt redemption , Budget planning and preparation , Inflation , Government debt management , Monetary base , Global

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Summary

The main priority was to seek assurances that policies were on track to facilitate a smooth transition to the postprogram environment. A stable exchange rate and continued declines in inflation have allowed reductions in interest rates in support of the economic recovery. With inflation risks now more balanced, Bank Indonesia's commitment to maintain a cautious monetary stance will help safeguard the hard-won gains on inflation and exchange rate stability. The Indonesia Bank Restructuring Agency is making good progress in bringing its asset sales programs to a successful conclusion.