JAKARTA, Oct 11 (Reuters) - Full text of Bank Indonesia's policy statement, translated by Reuters.
"The meeting of the board of governors decided to keep BI's rate at 5.75 percent. The rate remains consistent with low and manageable inflationary pressures within the inflation target in 2012 and 2013, 4.5 percent plus/minus 1 percent. The focus of policy will be aimed to maintaining external imbalances by supporting domestic economic growth.
"In the future, Bank Indonesia will continue to evaluate the impact of previous policy in accordance with the economic situation. Bank Indonesia will continue to strengthen coordination with government in managing domestic demand and improving balance of payments in line with the effort to maintain macroeconomic stability and sustain national economic growth.
"The board of governors considers that the global economy tends to grow slower than expected and is overshadowed by uncertainties. The recovery of the U.S. economy is still fragile. Meanwhile the economy in Europe is still contracting in line with its prolonged crisis. On the other side, the economy in China and India is expected to slow down.
"Global inflation in general is relatively moderate, in accordance with falling global commodity prices. The conditions encourage authorities in many countries to loosen policy to promote economic recovery.
"The board of governors sees domestic economic growth remaining good although it is not as high as expected. Economic growth in the third quarter is seen at 6.3 percent, lower than initial expectations as a result of weaker performance from external sector.
"Despite this, domestic-oriented consumption and investment remained grow high, but declines in exports have been impacted by the fall of export-oriented production and investment.
"In the future, economic growth is still supported by strong domestic demand and improving exports though it is overshadowed by global economic uncertainties. Indonesia's economy in 2012 and 2013 is seen to grow at around 6.1-6.5 percent and 6.3-6.7 percent, respectively.
"The balance of payment in the third quarter of 2011 is seen in surplus, supported by improving current accounts and a bigger surplus in capital and financial transactions. The current account deficit in third quarter of 2012 is seen as lower than second quarter 2012.
"The volatility of the rupiah in September 2012 is in accordance with the market condition with a declining intensity of depreciation. This is in line with policy taken by Bank Indonesia to stabilise the exchange rate of the rupiah within its fundamental levels.
"Inflationary pressures tend to decline and are manageable at a low level. Inflation from administered prices is manageable as the government does not impose policy in the price of strategic goods and services.
"In the future, Bank Indonesia will continue to consider the dynamics in the global economy and financial markets as well as the impact to the domestic economy. Various policies that have been taken will be evaluated and adjusted in accordance with the economic situation."
(Reporting by Rieka Rahadiana; Editing by Matthew Bigg)
Keywords: INDONESIA ECONOMY/TEXT