VIVAnews - INDEF economist Ikhsan Modjo estimated that large fund would penetrate Indonesia along with the political stability, following the Constitutional Court that there would not be a second round general election.
"The large fund will enter through the state bonds and Bank Indonesia certificate," he said in Jakarta on Thursday, Aug. 13.
He explained that the political certainty triggered an acceleration in incoming foreign fund, which might cause explosion in the number of the circularized money.
Modjo predicted that rupiah would significantly jump to Rp 8,000-9,000 per US dollar that might be affected by the Indonesia's positive growth rate.
Despite the gain in currency, he saw that the inflation in upcoming months will be more than a percent per month. This is due to the seasonal factor, such as the Ramadhan and Lebaran, and the government's expenditure increase in the end of the year, which reaches trillions rupiah.
The 3.65 percent inflation since the first semester until June 2009 shows the weak economy since the low inflation should have been able to boost the economic growth. However, the present condition creates a slowing economy.
Modjo said that the global crisis impacts have yet to affect Indonesia since the country's exports contribution to the gross domestic product is relatively small, less than 30 percent.
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Translated by: Ariyantri E. Tarman
