The above message was uttered by governor of Bank Indonesia Agus Martowardojo on Wednesday (17/07). He said that good coordination with the central government is needed to influence the country's trade balance in a positive manner.

For Indonesia a trade deficit is an unusual situation. Since 2005, the country's current account balance has shown a positive trend, with the exception of 2008 when the balance recorded a deficit. However, in the last six consecutive quarters, the balance was in deficit.

Indonesia's inflation rate is expected to increase about two percent in July as prices of subsidized fuels have been raised by the government (last month), while the fasting month (Ramadan) and Idul Fitri celebrations also bring traditional annual inflationary pressures. The central bank assumes that inflation in 2013 can go up to between 7.2 and 7.8 percent.

Inflation in Indonesia:

2013    Inflation
January      1.03%
February      0.75%
March      0.63%
April     -0.10%
May     -0.03%
June      1.03%
Total      3.35%
    2008   2009   2010   2011   2012   2013
(annual percent change)
   9.8    4.8    5.1    5.4    4.3    3.5¹

¹ year to date
Source: Statistics Indonesia