VIVAnews - The National Economic Committee (KEN) releases an outlook on the 2010 Indonesian economy. The Indonesian government is seen as capable of stabilizing the economy despite the flat outcome.
The committee stated that Indonesia has been an outstanding spot for investment after the global economic downturn between 2008 and 2009.
"The Indonesia Stock Exchange suddenly drew the interest of international investors to put their money in," reported KEN today, Dec 20.
The composite stock price index hit 3,500 nearing the end of 2010. In fact, the benchmark index touched 3,724 on November 19, 2010, a rise of 46.98 percent compared to the final level in 2009. The IDX index was considered one of the highest worlwide.
The current issue deals with how the government channels foreign investment to the real sector.
As regards growth of investment credit, Indonesia gained 12 percent. However, Bank Indonesia proves successful in taking crucial measures during the budget year.
Upon entering 2010, Indonesia was in the middle of 2.8 percent of inflation rate, which raised optimism amidst investors. "But the rise in food prices has resulted in higher inflation rate," KEN stated.
The growing loans as well as the revised electricity tariff in mid 2010 contributed to the inflation rate.
Bank Indonesia maintained the BI Rate at 6.5 percent due to the still controlled inflation.
In August 2010, the Rupiah appreciated to Rp 9,000 against US dollar. By the end of 2010, the exchange rate is expected to stay at around Rp 9,000 against US dollar.