BANK Indonesia has long projected a deficit over the next two years—Rp7.8 trillion in 2004 and Rp6 trillion in 2005. As a result, the central bank's capital adequacy ratio is expected to fall below 5 percent. In such an event, the shortfall, as discussed with the Finance Department, cannot be covered by debentures but in cash—subject to the approval of the House of Representatives (DPR).

The steps being taken by Bank Indonesia (BI) i