December 16, 2010

• Global drivers of Indonesia’s external balance, including capital inflows and commodity prices, have strengthened
  
  
• The challenge is to maximize the opportunities that these developments bring, while managing their risks
  
  
• GDP growth softened in Q3, mainly due to domestic factors, but the growth forecast for 2011 remains robust, at 6.2 percent
  
  
• Movements in volatile food prices continue to affect headline inflation
  
  
• The near-term risks are mainly externally-driven, particularly relating to capital inflows
  
  
• Policies aimed at addressing vulnerability to poverty and improving access to basic services across the population can help to promote further inclusive growth going forward