TEMPO.CO, Jakarta – Bank Indonesia Governor Agus Martowardojo predicted a low inflation rate in January as the government lowers the prices of fuels earlier this month.

“The [fuel price] decline has resulted in low inflation, and may cause deflation,” Agus said after meeting with President Joko “Jokowi” Widodo at the State Palace on Wednesday, January 28, 2015.

According to Agus, last year’s inflation rate that reached 8.3 percent had negative impacts on the domestic energy management. However, he was convinced that the low inflation rate early this year would help the government maintain the target until year-end.

Agus added the president had instructed governors and regents to control the prices of staple foods, including chili, chicken and broiler chicken eggs to safeguard the inflation rate. Agus said he was upbeat that sound coordination between the central and local governments would bar the inflation rate from exceeding four percent.

In addition to the staple food prices, Agus said the government was facing with a task to keep transportation tariffs under control. To date, Agus said, transportation tariffs in many regions must be decreased immediately as the tariffs had soared in light of the prior hike in fuel prices.

FAIZ NASHRILLAH