Jakarta, June 28 (Antara) - Indonesia recorded a high inflation rate in
May 2015, reaching 0.5 percent, the highest monthly inflation over the
past seven years, or 5.17 percent year-on-year.
In an effort to bring down the inflation rate, the central bank, Bank
Indonesia (BI), is set to cooperate with the government to lower the
inflation rate during the current holy fasting month of Ramadan.
"To reduce and control inflation during Ramadan, we need to coordinate
with the government," BI Deputy Governor Erwin Rijanto said.
For this purpose, BI has decided to maintain its reference rate at 7.5
percent for the fourth consecutive occasion to curb inflation, maintain
macroeconomic stability and improve current account deficit after it
reduced the rate by 25 basis points in February.
The central bank's board of directors also decided to maintain the
deposit facility rate at 5.5 percent and lending facility rate at 8.0
percent.
"The decision was in line with the efforts to maintain inflation at a
targeted rate of 4 plus/minus one percent in 2015 and 2016 and to direct
the current account deficit to a healthier level at between 2.5 and 3.0
percent of the gross domestic product in the medium term," BI's
Executive Director of the Communication Department Tirta Segara stated.
He remarked that BI's combined policies will focus on the efforts to
maintain macroeconomic stability in the midst of the ongoing global
uncertainty. He said the central bank also aims to maintain the momentum
of economic growth by issuing provisions linked to the relaxation of
macroprudential policies.
"Right
now, we certainly will be careful in maintaining the BI rate, as the
declining economic growth will continue to be the focus of our
attention," he affirmed.
Previously, the central bank set
Indonesia's economic growth at a range of 5.4 to 5.8 percent for 2015
but later revised it down to 5.1 percent.
The BI revised down its previous prediction of 5.4 percent (lower
limit) to 5.1 percent on Thursday. "In 2015, Bank Indonesia predicts
that Indonesia's economic growth will reach 5.1 percent, which is still
better than that in 2014 (5.0 percent)," BI Governor Agus Martowardojo
said.
At the same time, BI also set its projection of economic growth at a
range of 5.4 to 5.8 percent year-on-year (yoy) for 2016. "We predict
that the Indonesian economy in 2016 will grow at a range of 5.4 to 5.8
percent, higher than our revised growth rate of 5.1 percent for 2015,"
he affirmed at a hearing with the Budgetary Body of the House of
Representatives (DPR).
He stated that BI will strengthen coordination with the government in
controlling inflation and the current account deficit and in
accelerating the fiscal stimulus to boost economic growth.
The Central Bureau of Statistics (BPS) said Indonesia's inflation was
0.5 percent in May or the highest monthly inflation in 7 years.
Rise in the prices of food products contributed to the inflation in
May, BPS chief Suryamin said. The inflation in May brought the country's
inflation to 0.42 percent in the first five months of the year.
Inflation year-to-year was 7.15 percent.
According to President Joko Widodo (Jokowi), efforts to achieve higher
economic growth should be followed by efforts to control inflation. "It
is pointless if the economic growth reaches 5 percent while the
inflation rate still remains at 12 percent," President Jokowi remarked
while opening a national coordination meeting of the Regional Inflation
Control Team (TPID) in Jakarta last month.
Jokowi noted that the high inflation rate will lead to the public
buying an item at an expensive price. "That is what I always say during
all my meetings with the governors and regional heads," the president
emphasized.
With regard to the current inflation, the government is focusing on accelerating infrastructure development, he added.
"With adequate infrastructure, the prices of goods will also become
cheaper; and cheaper transportation cost will also result in cheaper
prices of goods," he affirmed.
Thus, the inflation rate could be lowered. This is important for the country to reinforce its competitiveness.
After all Indonesia, together other ASEAN countries, is facing the
implementation of the ASEAN Economic Communicty (AEC). In this case,
Bank Indonesia has assessed that the inflation rate will affect
Indonesia's competitiveness in the ASEAN Economic Community (AEC), which
will begin later this year.
"Especially to face the AEC, all parties must take up the
responsibility to control the inflation rate," Head of Bank Indonesia's
Representative Office V of Central Java-Yogyakarta Iskandar Simorangkir
said in Semarang, Central Java, on Friday early this month (June 5).
Simorangkir added that in the upcoming AEC, Indonesia will compete with
countries with low inflation rates. In fact, Singapore experienced
deflation and the inflation rates in other member states of ASEAN range
between only 1 and 3 percent.
"With low inflation in other competitor countries and the establishment
of an open market in the upcoming AEC, this is a serious challenge for
us," he pointed out.
Therefore, the central bank expects the inflation rate to be maintained
at least along the lines of the ASEAN regional inflation rate. ***3***
(T.A014/b003/B003)
(T.A014/A/A. Abdussalam/Bustanuddin) 28-06-2015 23: |
Tidak ada komentar:
Posting Komentar