REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) predicted that deflation would occur in April 2014 in range of 0.08 to 0.1 percent month to month (mtm) compared to March inflation of 0.08 percent. BI governor, Agus Martowardojo said that annual inflation in April was also expected to decline from 7.32 percent year on year (yoy) to 7.18 percent yoy.

"I estimated that we could see April deflation until the second week of the month," Martowardojo said on Monday.

April deflation can be achieved if economic condition in domestic is relatively consistent. BI observed that red chili and rice contributed to high deflation this month. BI continues to control inflation in line with the target of 4.5 percent plus or minus one percent in 2014. Government also needs to keep a healthy current account. Martowardojo said that Indonesia should maintain a tight monetary.

BI and Coordinating Ministry for Economic Affairs extended cooperation and coordination of inflation management. Martowardojo said that inflation control coordination required hard work due to various economic challenges.

Regional Inflation Control Team (TPID) development in Indonesia is growing rapidly. The number has reached 201 representatives in 168 districts and 33 provinces in Indonesia. Coordinating Minister for Economic Affairs, Hatta Rajasa said that TPDI was the umbrella to monitor and control inflation at national and regional level.

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