The Indonesian economic condition recently has not been in a good shape because of external and internal factors. The government is working hard in revising the state budget, because there aren’t many options. As targeted at the beginning of the year, the rate of development seems to be at the lower level for the target between 6,2 – 6,8 % . Meanwhile the inflation rate at the beginning of 2008 has risen to the rate around 6 – 6,5% from the earlier target of 4 – 6 %. Last January the inflation rate has reached a level of 1.77% and Year to Year reached 7,36%.Quite a high figure regarding that the target is around 4-6%. These figures have risen because the macroeconomic indicators have worsened due to external conditions such as the sub prime mortgage crisis in the US . The central bank’s revised prediction of the US ’s economic growth from 1.9 % to 1.5% shows the pessimism. While the latest World Economic Growth was also corrected from 4.4% predicted to 4.1 %. Th...
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