REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) estimates that annual inflation on June 2013 can reach 0.7 to 0.9 percent. The annual inflation has now reached 5.47 percent.
"The rising of fuel price subsidy will also push inflation. The range may occur between 0.7 to 0.9 percent. We will follow it," Governor of BI, Agus Martowardojo said on Thursday.
BI will anticipate the hike of fuel price, although the impact is estimated only three months. Martowardojo added inflation in July and August would be high.
Minister of Finance Chatib Basri said that Indonesia should be ready after the Federal Reserve implied to stop the policy of quantitative easing or purchase of assets and securities from financial markets.
"The Ministry of Finance has coordinated with BI to anticipate the effects that may arise from the termination of the Fed's policy. Maybe there will be a pressure on financial markets, but BI and government is ready to anticipate it," Basri said on Thursday.
Meanwhile Chairman of the Fed, Ben Bernanke said US economy grew strong enough, so US started to gradually reduce the speed of bond purchases by the end of 2013 and middle of 2014. This implied that the third quantitative easing which had been applied will be terminated and the US unemployment rate could be below seven percent from the current 7.6 percent followed by long term inflation rate above two percent.