Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fathan Qorib, Andin Aditya Rahman
After hearing the opinions from the factions at the House of Representatives regarding the Draft Bill on the 2014 State Budget (2014 Draft Budget), it is time for the government to deliver their reply.
The Government invited members of the House of Representatives to review assumptions on the inflation rate, which is currently determined at 4.5 percent with a 1 percent radius.
“The Government requests the honorable members of the House to review assumptions regarding the inflation rate that is mutually agreed in the preliminary 2014 Draft Budget,” said Minister of Finance Chatib Basri, in Jakarta on Tuesday.
The Minister explained that the review must be done, because the recent developments in the global economy caused the inflation rate this month to go haywire.
Despite such circumstances, he assured that Bank Indonesia (BI) along with the government will continue their efforts to safeguard the supply of food commodities in the domestic market, as well as continue to increase the supply and production of food from domestic sources.
Chatib affirmed that in controlling the current inflation rate needs synergy between policies on the fiscal, monetary and real sector.
“Through synergy between these policies it is expected that the control over the inflation rate will become more effective and directed to handle structural problems that are deterring the control over the inflation rate, such as asymmetric information, market structure, and pricing mechanism – which tends to be oligopolistic – and lack of infrastructure,” he explained.
On the other hand, BI has predicted the inflation rate, as of August 2013, to increase gradually and reach a figure between eight to nine percent year-on-year.
Agus D.W. Martowardojo, Governor of BI, explained that the predicted inflation rate is mainly caused by the recent increase in prices of subsidized fuel.
Due to the recent increase of subsidized fuel prices, the month-to-month inflation rate during this month could potentially reach the one percent figure.
“The inflation rate in August that we previously thought was lower than one percent. Maybe with the current conditions, it can be more than one percent,” the Governor said at BI Office in Jakarta last Friday.
In response to the current conditions, BI will coordinate with the central government as well as regional government. This coordination aims to retain the month-to-month inflation rate in August to be under one percent. With this coordination, BI is optimistic that the month-to-month inflation rate in September will return to normal.
Other than coordination with the government, the Governor said that BI will also optimize the implementation of existing instruments to keep the targeted inflation rate at the end of this year at 7.2 percent.
“We will issue policies, which will include macro-prudential provisions. If we cannot gain control this August, we will continuously respond,” he concluded.
(hot/kc)
Fathan Qorib, Andin Aditya Rahman
After hearing the opinions from the factions at the House of Representatives regarding the Draft Bill on the 2014 State Budget (2014 Draft Budget), it is time for the government to deliver their reply.
The Government invited members of the House of Representatives to review assumptions on the inflation rate, which is currently determined at 4.5 percent with a 1 percent radius.
“The Government requests the honorable members of the House to review assumptions regarding the inflation rate that is mutually agreed in the preliminary 2014 Draft Budget,” said Minister of Finance Chatib Basri, in Jakarta on Tuesday.
The Minister explained that the review must be done, because the recent developments in the global economy caused the inflation rate this month to go haywire.
Despite such circumstances, he assured that Bank Indonesia (BI) along with the government will continue their efforts to safeguard the supply of food commodities in the domestic market, as well as continue to increase the supply and production of food from domestic sources.
Chatib affirmed that in controlling the current inflation rate needs synergy between policies on the fiscal, monetary and real sector.
“Through synergy between these policies it is expected that the control over the inflation rate will become more effective and directed to handle structural problems that are deterring the control over the inflation rate, such as asymmetric information, market structure, and pricing mechanism – which tends to be oligopolistic – and lack of infrastructure,” he explained.
On the other hand, BI has predicted the inflation rate, as of August 2013, to increase gradually and reach a figure between eight to nine percent year-on-year.
Agus D.W. Martowardojo, Governor of BI, explained that the predicted inflation rate is mainly caused by the recent increase in prices of subsidized fuel.
Due to the recent increase of subsidized fuel prices, the month-to-month inflation rate during this month could potentially reach the one percent figure.
“The inflation rate in August that we previously thought was lower than one percent. Maybe with the current conditions, it can be more than one percent,” the Governor said at BI Office in Jakarta last Friday.
In response to the current conditions, BI will coordinate with the central government as well as regional government. This coordination aims to retain the month-to-month inflation rate in August to be under one percent. With this coordination, BI is optimistic that the month-to-month inflation rate in September will return to normal.
Other than coordination with the government, the Governor said that BI will also optimize the implementation of existing instruments to keep the targeted inflation rate at the end of this year at 7.2 percent.
“We will issue policies, which will include macro-prudential provisions. If we cannot gain control this August, we will continuously respond,” he concluded.
(hot/kc)