The document summarizes recent positive economic developments in Indonesia. GDP growth was 6.2% in Q2 2010 and is projected to be 5.5-6.0% for the full year. Inflation is estimated to remain within the target range of 5%±1%. The balance of payments posted a surplus in Q2 and international reserves increased. Banking stability was maintained with strong capital levels and low non-performing loans. Fiscal policy aims to continue stimulus while reducing debt, with the state budget targeting a deficit of 1.6% of GDP.