Indonesia's stock index, the world's second-best performer this year, may return to the record reached last year in the next 12 months as falling interest rates boost growth, PT Batavia Prosperindo Aset Manajemen said.

Indonesia's central bank cut its benchmark rate for the ninth consecutive month Wednesday, following a further decline in inflation.

Indonesian national airline Garuda announced plans on Thursday for an aggressive expansion after it was removed from a European Union aviation safety blacklist.

Indonesia's economic growth projections won't be harmed by last week's terrorist attacks on the JW Marriott and Ritz Carlton hotels in Jakarta, Trade Minister Mari Pangestu said.

Scenes of blood-smeared businessmen being stretchered out of luxury Jakarta hotels have had a chilling effect on expatriates and investors lulled by years of relative peace in Indonesia.

Indonesia may cut interest rates once more to stoke growth before faster inflation next year prompts policy makers to raise borrowing costs, economists said.

Indonesia's central bank cut its benchmark interest rate by 25 basis points to 6.75 percent Friday in a bid to stimulate the economy as inflationary pressures ease.

The Indonesian stock exchange and a biodiversity foundation have launched an investment index to raise awareness of companies' environmental track records, the environmental group said Tuesday.

Selling credits for the billions of tons of carbon that are locked in Indonesia's tropical rain forests could be as profitable as converting these areas into palm oil plantations, a study released Friday found.

The Asian Development Bank approved a US$1 billion loan to Indonesia to keep up spending on poverty alleviation and other key social projects during the financial downturn.