Meeting of the Board of Governors (RDG) of Bank Indonesia on 6 April 2010 decided to maintain the BI Rate at 6.5% level. In a press statement on its Web site meniilai BI BI Rate is still at a level consistent with achieving the inflation target in 2010 and 2011 amounted to 5% ± 1%.

Board of Governors also considers that the BI Rate was still believed to be conducive to strengthening the economic recovery process, maintaining financial stability, and encourage banking intermediation. Bank Indonesia also believes that the strengthening domestic economy will continue to support global economic performance are more conducive.

Development until the first quarter-2010 showed the global economic recovery, especially in the United States, China and India, is faster and stronger than previously thought. Meanwhile, the Greek settlement of the debt crisis has so far responded positively by economic actors and only a limited impact on financial markets.

Global economic recovery coupled with the risk perception has driven the increasingly strong optimism in the financial market and commodity markets as reflected by the indicators of capital market, commodity prices and increasing world trade volume is higher than original estimates.

Likewise the increase in global capital flows to emerging markets, including Indonesia. Strengthening the domestic economy is reflected in the development of an improved external side, a stronger exchange rate, the maintained price stability, and prospects for higher economic growth.

Rupiah exchange rate trends strengthened in line with the improving economic fundamentals and declining investment risk. During the first quarter-2010, the average amount recorded for 2.2% reinforcement.

While inflation in a matter related to inflationary pressures on the BI-2010 first quarter was marked by deflation tended to decline in March 2010 amounted to 0.14% (mtm), so that annual CPI inflation reached 3.43% (yoy).

In the financial sector, banking system stability will be maintained, accompanied by relatively high capital ratios and the ratio of bad loans at a low level. Stability of the banking system was reflected in the Financial Stability Index (FSI), which at the end of March 2010 is still likely to decline and maintained below the maximum limit set indicative.

Although the banking intermediary function is still not as expected, loan growth until the end of March 2010 was recorded at 11% (yoy) in line with the increasing confidence of economic actors on the economic outlook has improved.

On the micro side, the banking industry showed steady growth, as reflected in high capital adequacy ratio (CAR / Capital Adequacy Ratio) and maintained the ratio of nonperforming loans (NPL / Non-Performing Loan) under a 5% gross.