The June inflation rate decreased slightly to 3,28% (yoy) from 3,32% in May. This indicates that the trend in inflation expectations is stabilizing in the medium term. The increasing trend in core inflation in recent months should not be misinterpreted as an increase in household demand; this simply reflects seasonal patterns. From an external perspective, the world economic slowdown continues. The GDP of developed countries consistently shows a downward trend in growth rates, at least until 2020. Large developing countries such as China and India also show no growth. This continues to be a challenge for Indonesia's external position. We project that the current account deficit (CAD) in Q2 2019 will worsen compared to the previous quarter. We still see that CAD improvements in 2019 will remain a challenge. The structural policies that have been implemented by the Indonesian Government currently need to be further strengthened.

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