Nevertheless, earlier predictions that the rupiah would strengthen to as much as 6, 000 to the dollar this year are looking unduly optimistic.

ECONOMIST: Problems mount for Indonesia��s new president

"Business mood which was unduly optimistic in 2007, is unduly pessimistic today, " the prime minister said in his address to an annual gathering of India's industry leaders, hosted by the Confederation of Indian Industry (CII), on Wednesday.

BBC: Pm Manmohan Singh