RI economy to face more challenges in H2

Monday, 11 January 2010

The Jakarta Post 

Indonesia's economy will likely face more challenges in the second half of this year due to external factors that may affect the local currency and commodity prices, Finance Minister Sri Mulyani Indrawati said Monday.

"The challenges will be seen in the second semester. The global situation will drive the dynamics of exchange rates as well as commodity prices," she told reporters. "It will be reflected in our fiscal policies, our revised budget."

She said inflationary pressures would not materialize in the first semester because the government could stabilize prices.

Full-year inflation is estimated to range between 4 percent and 6 percent this year, up from 2.78 percent in 2009, the government said.