BI PREDICTS LOWER INFLATION RATE IN OCTOBER

Jakarta, Oct. 31 (ANTARA) - Bank Indonesia (BI/central bank) predicted on Friday the country's inflation rate in October 2008 will be lower than in September 2008, meaning that the government's single-digit inflation target is likely to be met.

"For October, it seems that the figure will be lower than in September, so there is hope our target of achieving a single-digit inflation rate st the end of the year will be met," BI Governor Boediono said.
He said the situation in October, especially price stability, was better than in September 2008.
"In short, the situation this month is better (than last month)," he said.
On the rupiah's volatility, Boediono said the condition reflected the current money market situation.
"The rupiah is indeed like that. It's in line with the market condition. We will try to curb the volatility. We have the means and we are alway in the market," he said.
The rupiah plunged to Rp11,000 per dollar in the Jakarta interbank spot market on Friday morning as market players again bought US dollars in big amounts.
The rupiah traded at Rp11,100/11,400 per US dollar early Friday compared to the previous day's close at Rp10,600/10,625 per dollar, or down 500 points.
According to a money market observer, a chance for the Indonesian currency to strengthen and rebound to the level of Rp9,500 per US dollar was getting very slim.
Meanwhile, on the restructuring of state debentures, Boediono said that the matter was still being discussed.
"The talks are still going on, but the agreed principle is the interest of SU002 and SU004 state debentures is lowered to 0.1 percent, and the SU007 state debentures will be restructured partly so that some will be abolished when the time come," he said.
It had to wait until the situation of BI's balance was safe, he said.