Indonesia ’s economic growth stood at 5.62 percent in the third
quarter of 2013, the lowest rate in the past four years, the country’s
Central Statistics Agency (BPS) announced on November 6.
According to the BPS, the economic slowdown this year was attributed to a
decrease in the demand for its exports like coal and rubber, especially
from China – its main consumer.
The situation even
deteriorated in recent months as the country’s inflation surged due to
fuel price hikes and the rupiah plummeted on fears that the US may
taper off its huge stimulus programme.
In order
to curb inflation and raise the value of the rupiah, Indonesia has
tightened its monetary policy by raising the interest rate by 1.5
percent since June.
Thanks to these efforts,
the October inflation was down to 8.32 percent from 8.40 percent in
September, however, it is still the highest level in more than four
years. High inflation caused a reduction in household consumption, which
contributes more than 50 percent of the country’s GDP.
Indonesia ’s central bank has lowered its projection for the
domestic economic growth in 2013 to 5.5-5.9 percent from 5.8-6.2 percent
set previously.-VNA