Indonesia's GDP growth to edge higher to 6.6-6.8%

While inflation will stand pat at 4.9-5.3%.

According to OCBC, Finance Minister Martowardojo said that GDP growth may reach 6.6-6.8% this year while inflation is set to be steady within the 4.9-5.3% range. Added that USD-IDR will average 9300-9700 this year. Meanwhile, Deputy Finance Minister Siregar was quoted indicating that fiscal deficit is likely to stay below 2% of GDP for this year.

"BI Governor Nasution was quoted indicating to the parliament that the central bank is always ready to intervene if the IDR were to weaken excessively going forward. Note that a BI spokesman also suggested last week that the central bank is watching psychological levels in the USD-IDR trade without providing more details," OCBC report further said.