REPUBLIKA.CO.ID, JAKARTA -- Finance Minister Chatib Basri said the economic policy package of August 2013 has been effective in warding off the impact of external turbulence.

"I can say the policies adopted by the government since August 2013 have been effective in reducing current account (CAD) and trade deficits," Chatib said in a news conference here on Monday.

He pointed to trade surplus of US$776.8 million in November, 2013 and current account deficit being narrowing in the third quarter of 2013.

The current account deficit narrowed to US$8.4 billion or 3.6 percent of the country's GDP in the third quarter of 2013 from US$9.9 billion or 4.4 percent of the GDP in the first half of the year.

The trade balance began to improve in October with surplus at US$24.3 million October up to US$776.8 million in November, improving the country's balance of payments in the last quarter of 2013.

"It was estimated the current account deficit was around 3.5 percent-3.7 percent of the GDP in 2013 and in 2014 it is expected to be narrowed to 2.7 percent-3.2 percent," Chatib said.

In addition, the positive effect of the economic policy package was also reflected in the inflation, which was only 8.38 percent on-year despite the rise in the prices of subsidized oil fuels (BBM) in June, he said.

The inflation was less than 10 percent even less than 9 percent thanks to policy package, which abolished import quota for foodstuff, he said.

When the BBM prices were raised in 2005 and in 2008 inflation soared to nearly 17 percent and 11 percent respectively, he pointed out.

He said in 2013, the country's economic growth was estimated at 5.7 percent falling short of the target of 6.3 percent with rupiah averaging at 10,452 per US dollar as against the target of 9,600 and oil production averaging at 825,000 barrels per day falling short of the target of 840,000 barrels.

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