Fathan Qorib, Andin Aditya Rahman
The Government is optimistic that the inflation rate by end of 2013 will not reach Bank Indonesia’s (BI) 7.76 percent estimation, even with the government’s plan to increase the price of subsidized fuels. However, there must be firm efforts from the Government to suppress inflation from reaching such a figure.
“Mitigation efforts in ensuring food supply and distribution channels may prevent inflation from reaching BI’s 7.76 percent estimation. I am confident that our inflation will only reach 7.2 percent,” stated Minister of Finance Chatib Basri at the Parliament, Jakarta, Monday (3/6).
He further explained that this is affirmed by Statistics Indonesia (BPS), which noted a 0.03 percent deflation in May. According to Chatib, the essential step in suppressing inflation is to ensure food supply availability including its distribution.
“This has proven to be effective. With food supply increasing last month, last May there was a deflation. This makes us confident that the 2.4 percent inflation rate, due to the subsidized fuel price increase, will be controllable,” he explained.
On the other hand, Hatta Rajasa, Coordinating Minister for Economic Affairs, stated that the deflation in May was predictable, considering that there was a 0.01 percent deflation in the previous month.
Hatta also asserted his optimistic view that inflation at the end of the year will only reach 7.2 percent, even with subsidized fuel prices increasing.
Previously, Perry Warjiyo, Bank Indonesia Deputy Governor, stated during a meeting with the Budget Committee at the House of Representatives, Wednesday (22/5) that the plan to increase fuel prices will affect inflation rates to reach 7.2 to 7.7 percent.
“Inflation rate will be at 5.5 percent if subsidized fuel prices do not increase,” Perry concluded.
(hot/ds)
Fathan Qorib, Andin Aditya Rahman
The Government is optimistic that the inflation rate by end of 2013 will not reach Bank Indonesia’s (BI) 7.76 percent estimation, even with the government’s plan to increase the price of subsidized fuels. However, there must be firm efforts from the Government to suppress inflation from reaching such a figure.
“Mitigation efforts in ensuring food supply and distribution channels may prevent inflation from reaching BI’s 7.76 percent estimation. I am confident that our inflation will only reach 7.2 percent,” stated Minister of Finance Chatib Basri at the Parliament, Jakarta, Monday (3/6).
He further explained that this is affirmed by Statistics Indonesia (BPS), which noted a 0.03 percent deflation in May. According to Chatib, the essential step in suppressing inflation is to ensure food supply availability including its distribution.
“This has proven to be effective. With food supply increasing last month, last May there was a deflation. This makes us confident that the 2.4 percent inflation rate, due to the subsidized fuel price increase, will be controllable,” he explained.
On the other hand, Hatta Rajasa, Coordinating Minister for Economic Affairs, stated that the deflation in May was predictable, considering that there was a 0.01 percent deflation in the previous month.
Hatta also asserted his optimistic view that inflation at the end of the year will only reach 7.2 percent, even with subsidized fuel prices increasing.
Previously, Perry Warjiyo, Bank Indonesia Deputy Governor, stated during a meeting with the Budget Committee at the House of Representatives, Wednesday (22/5) that the plan to increase fuel prices will affect inflation rates to reach 7.2 to 7.7 percent.
“Inflation rate will be at 5.5 percent if subsidized fuel prices do not increase,” Perry concluded.
(hot/ds)