REPUBLIKA.CO.ID, PALEMBANG -- Bank Indonesia governor Agus Martowardojo said that inflation has returned to normal and is expected to continue into 2014.

"The monthly rate of inflation has returned to a normal level after reaching 8.4 percent in the August-September period," he said, after witnessing the handing over of the post of head of the BI Region VII office here on Monday.

He noted that the development was supported by improvements in the global economy that had positively affected the country's exports.

Based on its analysis, BI has set the target of economic growth at 5.8 to 6.2 percent next year, while the rate of inflation would be about 4.5 percent, Agus said.

"The economy would also be improved by increasing the buying power of the people, due to the positive impact of general elections in 2014," he said.

In spite of his optimism, however, Agus Martowardojo still saw threats from the global economy due to uncertainty in the financial markets and a reduction of the stimulus in the US.

"We must remain alert, as the global economy has not yet fully recovered," he said.

Indonesia's economy in 2013 is predicted to not be as strong as earlier expectation, as growth might slow to some 5.9 percent from 6.2 percent in 2012.

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