Indonesia kicked off 2004 on top form. Oh January 9 the Jakarta Stock Exchange (JSX) index hit an historical high at 753.692 points, topping its previous peak of 740.833, reached on July 8, 1997. The market was driven up by a regional market rebound and a genuine optimism that Indonesia's long-languishing economy is making a comeback. The central bank, Bank of Indonesia, estimated that the country's GDP grew nearly 4% last year and should achieve at least 4.5%-5% growth in 2004. The Jakarta bourse's index increased by almost 80% in dollar terms in 2003, and another 10% in the first three weeks of 2004. On the face of it, Indonesia's macro-economic picture looks pretty good. The rupiah has stabilised, the budget deficit in 2004 is expected to go down to 1.2% of GDP, inflation was less than 10% last year and interest rates are at an all-time low - reaching 8.5% in mid-January.
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