JAKARTA, Oct 11 (Reuters) - Full text of Bank Indonesia'spolicy statement, translated by Reuters.
"The meeting of the board of governors decided to keep BI'srate at 5.75 percent. The rate remains consistent with low andmanageable inflationary pressures within the inflation target in2012 and 2013, 4.5 percent plus/minus 1 percent. The focus ofpolicy will be aimed to maintaining external imbalances bysupporting domestic economic growth.
"In the future, Bank Indonesia will continue to evaluate theimpact of previous policy in accordance with the economicsituation. Bank Indonesia will continue to strengthencoordination with government in managing domestic demandand improving balance of payments in line with the effort tomaintain macroeconomic stability and sustain national economicgrowth.
"The board of governors considers that the global economytends to grow slower than expected and is overshadowed byuncertainties. The recovery of the U.S. economy is stillfragile. Meanwhile the economy in Europe is still contracting inline with its prolonged crisis. On the other side, the economyin China and India is expected to slow down.
"Global inflation in general is relatively moderate, inaccordance with falling global commodity prices. The conditionsencourage authorities in many countries to loosen policy topromote economic recovery.
"The board of governors sees domestic economic growthremaining good although it is not as high as expected. Economicgrowth in the third quarter is seen at 6.3 percent, lower thaninitial expectations as a result of weaker performance fromexternal sector.
"Despite this, domestic-oriented consumption and investmentremained grow high, but declines in exports have been impactedby the fall of export-oriented production and investment.
"In the future, economic growth is still supported by strongdomestic demand and improving exports though it is overshadowedby global economic uncertainties. Indonesia's economy in 2012and 2013 is seen to grow at around 6.1-6.5 percent and 6.3-6.7percent, respectively.
"The balance of payment in the third quarter of 2011 is seenin surplus, supported by improving current accounts and a biggersurplus in capital and financial transactions. The currentaccount deficit in third quarter of 2012 is seen as lower thansecond quarter 2012.
"The volatility of the rupiah in September 2012 is inaccordance with the market condition with a declining intensityof depreciation. This is in line with policy taken by BankIndonesia to stabilise the exchange rate of the rupiah withinits fundamental levels.
"Inflationary pressures tend to decline and are manageableat a low level. Inflation from administered prices is manageableas the government does not impose policy in the price ofstrategic goods and services.
"In the future, Bank Indonesia will continue to consider thedynamics in the global economy and financial markets as well asthe impact to the domestic economy. Various policies that havebeen taken will be evaluated and adjusted in accordance with theeconomic situation."
(Reporting by Rieka Rahadiana; Editing by Matthew Bigg)
Keywords: INDONESIA ECONOMY/TEXT