A Disrupted Economic Growth Momentum

THE growth of the Indonesian economy in 2006 was truly quite impressive. Gross domestic product (GDP) in the first and second quarters of this year grew by 5.5 percent. In the third and fourth quarters, growth was even more rapid, 5.9 percent and 6.1 percent respectively. This data indicates that the national economy was experiencing rapid growth.

This achievement had much to do with the reductions in the Bank Indonesia (BI) Rate. The BI policy

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