Market Pulse

As predicted, Bank Indonesia (BI) last week kept the SBI at 7.5 percent. But this month's inflationannounced early next monthmight slightly be above expectations. This is due to the pass-on effect of a prolonged weak rupiah, which affects prices of imported basic goods, including oil. As a result, the possibility of a drop in BI's SBI rate becomes more remote.

But another growing concern of producers and traders, aside from a weak rupiah, has been the economy's poor growth performance, leading many to doubt that the government's 2015 5.7 percent growth target can be achieved.

April 21, 2015