Indonesian Embassy, New Delhi

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ECONOMY

Major Economic Indicators for 2000
Gross Domestic Product (GDP)	Rp. 379,557.7 billion
Annual Economic Growth	4.77%
Inflation	9.35%
Exchange Rate	Rp. 7,100 to Rp. 8,505

During the fist semester of 2001 the performance of Indonesia’s economy showed 3.3% year to year economic growth, 5.46% year to date (Jan-June) inflation rate, an exchange rate of Rp. 10,511 against US Dollar.

Observed from this economic performance, it is projected that the economy of Indonesia as a whole will grow around 3.5% with an inflation rate of 9.3%. meanwhile , the Rupiah exchange rate is predicted at an average of Rp. 9,600 per US dollar and an interest rate at an average of 15% SBI for three months.

Improvement of the economic growth will give a great opportunity for improvement of Indonesia’s export performances, especially the non-oil and non-gas export and domestic investment. This in turn will increase Indonesia’s economic performance.

In 2002 the macro-economic policy will be aimed at self-sustained economy recovery, and will be carried out though a series of monetary policies, fiscal, enterprise restructuring and assets recovery by ath IBRA (Indonesian Bank Restructuring Agency), and restructuring policies in various sectors.

Along with the projection of national economic growth, inflation target and exchange rate, the growth rate of primary monetary in 2002 is projected at around 12-13%.

In 2002 inflation rate is projected to drop to 8.0%. One of contributory factors to the improvement is the strengthening of the Rupiah exchange rate in line with the confidence of the market towards Indonesia’s economy. Other factors are the sufficient availability of goods and services, the smooth distribution, the dynamic regional economy, and the careful fiscal policy through a deficit control in the domestic Product in 2002 to around 2.5% in 2002. Another factor is the careful and consistent monetary policy with primary monetary growth of 12.13%.

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