TEMPO.CO, Jakarta - Bank Indonesia (BI) and the government at a high-level meeting held on Wednesday, January 25, 2017, set targets for inflation rate at as high as 3.5 percent plus or minus 1 percent from 2019 to 2021.
“The targets were set by considering prospects and economic competitiveness,” BI governor Agus D.W. Martowardojo said during a press conference at the BI Complex in Jakarta on Wednesday, January 25, 2017.
Agus explained the government and BI are committed to strengthening coordination, particularly in formulating energy policies and reinforcing food policies in a bid to control volatile food inflation at between 4 percent and 5 percent.
The BI governor added the government and BI would anticipate external and domestic challenges, particularly those related to commodity price hike, removal of electricity subsidy for 900 VA customers, vehicle administration fee hikes, “as well as the one-price fuel policy that needs to be adjusted with the global oil price hike.”
Agus pointed out that the 2016 inflation rate of 3.02 percent was a record low since 1997.
“The achievement can be attained thanks to excellent coordination between the central government and regional governments,” he said.
GHOIDA RAHMAH
