Darmin: April Inflation Because of Late Harvest

TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Darmin Nasution, said that the late harvest of several commodities are the main cause of relatively high inflation on April 2019. Late harvest occurred on several commodities such as rice, pepper, garlic, and shallot.

"This is because of lateness. If the rainy season is somewhat long, [harvest] will be delayed," Darmin said during the Simpanan Pelajar (Student Savings) Day at the Finance Ministry office on Thursday, May 2, 2019.

Nevertheless, Darmin did not view the inflation caused by late harvest as a permanent issue, because pepper and shallot harvest will occur soon. As harvest begins, Darmin predicted that inflation rate will be corrected and remain at a lower rate.

Questioned regarding the effect of airlines tariff on inflation rate, Darmin refused to provide answers. He just stated that his ministry will hold a meeting to discuss the aviation sector. "We haven't had any meeting, the State-Owned Enterprise Minister has events [to attend]," he explained.

Meanwhile, on the same day, the Central Statistics Agency (BPS) recorded the April 2019 inflation to be at a level of 0.44 percent. The main driver of the inflation was the airlines tariff and food commodities. Based on BPS calculation, the April inflation rate had reached 2.8 percent, year-on-years. Meanwhile, inflation rate for the current calendar year from January to April 2019 is recorded at 0.8 percent.

According to BPS's records, the price of food commodities contributed to 0.31 percent of the inflation, while the transportation sector contributes to 0.05 percent. The most notable price increase occurred on shallot, which recorded at an average of 22.93 percent.

FRANCISCA CHRISTY ROSANA