Inflation estimation of 6.5% suits the previous assumption

Wandrik Panca Adiguna
Wandrik Panca Adiguna - 13 Desember 2010  |  13:37 WIB

JAKARTA: The government sees Bank Indonesia prediction of 2010 inflation rate which standing in the range of 6.5% is still in accordance with the previous assumption about +5 or -1%.

Agus D. W. Martowardojo, Minister of Finance, said the big challenge for the government and Bank Indonesia at the end of this year is keeping the inflation in line with the assumption of +5/-1%. However, the absolute prediction will stand between 6.1 and 6.4%."But if the central bank said (inflation 2010) it is in 6.5%, we also see the same way," he said.As for next year, as Agus said, if policy on the restriction of fuel oil (BBM) subsidy to be applied, there will be little inflation pressure. Nevertheless, the government and Bank Indonesia will attempt to keep inflation in accordance with the assumption written in the State Budget 2011 at 5.3%."We also have noticed the trend of increasing commodity prices, we have talked about the macro and global economy and we have agreed with other assumptions," he said.Related to the rising oil price, the minister sees that it is still a new beginning movement that may still fluctuate. However, the government will particularly give special attention to the commodity prices.At the same occasion, Minister of Energy and Mineral Resources (EMR) Darwin Zahedi Saleh said imposing restrictions on subsidized fuel for a new early stage will be conducted in the area of Jakarta next year. The Impact on inflation will only occur in the region with estimated increase of 0.15%. (t03/wiw)

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