BMI Research: Emerging Markets Monitor: Indonesia: Further Easing Still On The Cards.

The article presents an outlook for the economy of Indonesia in 2009 and discusses the decision of the Bank of Indonesia (BI) to reduce its benchmark policy rate at its June 2009 meeting. It cites the possible 25 basis points (bps) of rate cuts by the end of 2009. It mentions the growth of private consumption in the January-March 2009 period and a sharp deceleration of fixed capital formation from the 9.1% growth in the fourth quarter of 2008. Also discussed is the market performance of Indonesian rupiah.