INDONESIA MAINTAINS LOW INFLATION RATE BY OCTOBER 2009

After experiencing 11.06% high inflation rate in 2008, Indonesia manages to maintain low rate in 2009. The rate is only 2.48% during the 10 months of 2009. Projection for the whole 2009 is 4.50%, and for 2010 is 5.00%.

2009 3RD QUARTER BALANCE OF PAYMENT OF INDONESIA (MILLION USD)

Indonesia posts USD 3,546 million surplus in its balance of payment during the 3rd quarter of 2009. Current transactions are surplus by USD 1,739 million and capital and financial transactions are surplus by USD 2,996 million. Foreign exchange reserve amounts to USD 62,287 million at the end of the quarter, the highest ever. This figure can cover 6.1 months of import and government debt obligation.

2010 STATE BUDGET PLAN OF INDONESIA (BILLION RUPIAH)

Indonesian 2010 state budget plan projects an increase of revenue by 4.5% and expenditure by 0.4% over those of 2009. These increases reduce budget deficit of 2010 by 26.3% over that of 2009. Growth of GDP for 2010 is projected at 5%.

2009 3RD QUARTER REALIZATION OF INDONESIAN STATE BUDGET (BILLION RUPIAH)

Revised 2009 state budget of Indonesia plans for a total revenue of 871.0 trillion Rupiah and total expenditure of 1,000.8 trillion Rupiah resulting a budget deficit of 129.8 trillion Rupiah. This large deficit constitutes an economic stimulus package. Realization for the nine months of 2009 is 64.7% for the revenue, 59.6% for the expenditure, and 25,6% for the deficit. Observers are pessimistic that the figures can be realized for the whole year.

2009 3RD QUARTER GDP OF INDONESIA (BILLION RUPIAH-2000 CONSTANT PRICE)

Gross Domestic Product (GDP) of Indonesia in the 3rd quarter of 2009 grows by 3.9 percent over that of the 2nd quarter. Compared to that of the same quarter of 2008, the GDP grows by 4.2 percent. Cumulatively, the growth of GDP for the three quarters of 2009 compared to that of the same period of 2008 is 4.2 percent.

2009 2ND QUARTER GDP OF INDONESIA (BILLION RUPIAH-2000 CONSTANT PRICE)

Indonesian economic growth as measured by the growth of Gross Domestic Product (GDP) in the second quarter of 2009 over that of the first quarter is 2.3 percent, and over that of the same quarter of 2008 is 4.0 percent. Cumulatively, the growth of the first semester of 2009 compared to that of the same semester of 2008 is 4.2 percent.

2009 1ST QUARTER GDP OF INDONESIA (BILLION RUPIAH-2000 CONSTANT PRICE)

Indonesian economy as measured by GDP at current price, in the first quarter of 2009 amounts to Rp1,300,300 billion, while GDP at 2000 constant price amounts to Rp527,300 billion. GDP growth between the first quarter of 2009 and the fourth quarter of 2008 is 1.6 percent. GDP growth between the first quarter of 2009 and the first quarter of 2008 is 4.4 percent. This figure reflects GDP growth expectation for 2009.

2008 GDP OF INDONESIA (BILLION RUPIAH-2000 CONSTANT PRICE)

Amidst the world economic downturn, Indonesian GDP managed to grow by 6.1% in 2008. From demand side 65.3% of the GDP was contributed by consumption, 23.7% by investment, 49.6% by export, and 40.0% by import. From supply side 13.7% of the GDP was contributed by agriculture, cattlery, and fishery, 26.8% by processing industry, 17.4% by trading, hotel, and restaurant, and 9.5% by finance, rental, and corporate services. Indonesia is aiming at growing by 7% in 2014.

WHY INDONESIA SURVIVES THE LATEST WORLD FINANCIAL CRISIS

Learning from Suharto's 3 decades of office which full of corruption, collusion, and nepotism that weakened banking system, Indonesia improves the system especially by implementing good corporate governance. By this governance each bank is obligated to set up audit committee, risk management committee, and nomination and remuneration committee.
What does this mean? This means that Indonesian banking system becomes healthier, more prudent, and more professional. Besides that, counter cyclical measures and domestic market which is supported by more than 200 million people of population is adequately strong to resist the crisis. Credible directly elected President as figured by President Susilo Bambang Yudhoyono also takes the role here as a result of Indonesian political reform.

The current world economic crisis is said to be generated by the collapse of Wall Street which is under President Bush's administration, moves wildly, lack of controll, and full of financial manipulations. Basically Indonesian's economic technocrats are American educated/oriented persons. In other words America is the place where most people from around the world study economics, so that it is rather disturbant that the current world financial crisis is generated by the country.

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