REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) anticipates that the United States economy will show signs of strengthening, stated Governor of Bank Indonesia Agus D.W. Martowardojo.
"The world is still at risk as the US economy has not yet fully recovered. We must anticipate it," Martowardojo noted here on Monday.
Martowardojo remarked that Indonesia should be vigilant about the weakening Chinese economy and the prices of commodities.
"In general, in Indonesia, the revised state budget has been approved. The current inflation rate is as per the target and may even be better. It is good," he claimed.
In February 2015, deflation reached 0.31 percent, so the year-on-year (YoY) inflation will be 6.29 percent.
"For the Indonesian economy, this shows good progress as compared to last year's recorded value of 8.3 percent and is due to the hike in fuel prices in November," he remarked.
He noted that there is good progress as the deflation in January was recorded at 0.024 percent and 0.31 percent in February. It is estimated that in 2015, inflation will be below 4 percent.
The former finance minister affirmed that the central bank's monetary policy depends on data, particularly related to the performance of inflation and the current account.
"The inflation has declined, but the current account deficit is of key concern. We need to see the performance," he said.
Earlier, the Indonesian government had taken various measures and efforts to control inflation in 2015 in accordance with its planned target.
"We will do anything to control inflation," Coordinating Minister for Economic Affairs Sofyan Djalil stated here on Monday.
According to Djalil, the government can control inflation because the price of rice is no longer a problem. The current stock of rice is sufficient to meet the demand till the next harvest season in March and April 2015.
In this regard, Djalil revealed that the State Logistics Agency (Bulog) will play a greater role.
He feared that the rising prices of rice in various regions could lead to a sharp increase in inflation.
"As the price of rice can affect inflation significantly, the government is determined to tackle the problem," he stated here on Tuesday.
To curb the rising prices of rice, the government has distributed rice to the poor (raskin), he noted.
"We asked Bulog to conduct market operations," he affirmed.
Djalil acknowledged that the rising prices of rice are a result of scarcity in its supply, although Bulog's stock of 1.4 million tons of rice could be sufficient to meet the demand for the next few months.
Therefore, the problem of delays in supply is expected to be solved soon.
"We have distributed as much as 300 thousand tons of rice to the poor. Bulog must ensure the supply," the minister emphasized.
Furthermore, Djalil also pointed out that the government will take legal action against perpetrators found illegally stocking and reselling rice.
Although rice prices have increased, but the prices of other food commodities have not gone up. This has raised suspicions that the surge in the price of rice was caused by traders hoarding stocks of the commodity.
Ikuti Whatsapp Channel Republika
