In the meeting of the Board of Governors (RDG) of Bank Indonesia, May 9th 2006, Bank Indonesia has decided to cut the BI rate by 25 bps to 12.50%. This policy, which keeps on reflecting the tight bias monetary policy, was taken after the assessment to the latest economic condition and future prospect that shows further macroeconomic stability in April 2006, as reflected in the exchange rate movement, inflation and monetary condition. The Board of Governors thinks that macroeconomic stability is improving further, therefore medium and long-term inflation is projected to be on target.
