On 12 December 2013, the next Board of Governor's meeting of Bank Indonesia is scheduled and which will answer the question whether the bank will raise its benchmark interest rate (BI rate) again. Between June and November 2013, Bank Indonesia raised its BI rate from 5.75 percent to 7.50 percent in order to curtail high inflation. However, this policy comes at the expense of higher economic growth.

The IHSG fell 1.11 percent to 4,241.30 on Wednesday (04/12).

The Indonesian rupiah exchange rate continued its depreciating trend amid speculation that the quantitative easing program will be wound down soon as US economic data are improving. Another factor is that US dollar demand hightened as local Indonesian companies are buying US dollars for end-of-the-year debt repayments.

| Source: Bank Indonesia