RI Inflation Rate Highest in ASEAN: BI Governor

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  • TEMPO.CO, Jakarta – Bank Indonesia (BI) Governor Agus Martowardojo said the current inflation rate, increasing to 6.79 percent in April 2015 from 6.39 percent in the first quarter of this year, was attributable to the fuel price hike in March 2015. 

    “Despite being under control, the inflation rate in Indonesia is still the highest among those in South East Asian countries” Agus said in Jakarta on Wednesday, May 27, 2015. 

    The inflation rates in other ASEAN countries stood at below five percent, for instance the Philippines with 2.29 percent and Malaysia with 0.9 percent. Meanwhile, Singapore and Thailand experienced deflations of 0.3 percent and one percent, respectively. 

    Agus said he was hopeful that the target to contain the inflation rate at four percent, plus or minus one percent, would be achieved through solid coordination with the government. Speaking at the National Coordination Meeting of Regional Inflation Controller Team, Agus praised the government’s reforming its fuel subsidy policy.

    “The policy will ease the inflation rate that often occurs whenever there is fuel price adjustment due to pressure on the fiscal,” Agus said.

    Agus added that the fiscal space created by the policy could be utilized to build infrastructure that would improve competitiveness. Therefore, the government would be able to control tariffs, shorten distribution chain and assist the deprived.

    In addition, the National Working Group of the Regional Inflation Control Team has actively executed the 4K program ensuring goods and services availability, price affordability, distribution smoothness and effective communication to manage public perceptions on prices.