Bank Indonesia Senior Deputy Governor Mirza Adityaswara sees inflation will rise in April - Photo by Bank Indonesia Office
JAKARTA (TheInsiderStories) – Bank Indonesia (BI) predicted inflation in April will rise amid higher shallots, garlic, and fruit prices, explained Senior Deputy Governor Mirza Adityaswara in Jakarta on Friday (04/12). Based on the Price Monitoring Survey in the second week of April 2019, there was inflation 0.25 percent in April and in annual basis 2.64 percent.
Last month inflation rate at 0.11 percent and yearly 2.48 percent. Adityaswara assumed food prices are the factor that contributed of the inflation of 2019.
“Prices of onion on a monthly basis rose 18 percent, compared to the first week of April which rose 15.5 percent. Garlic prices rose 21.6 percent on a monthly basis, so it is quite high. Then, tomatoes also rose,” he told reporters in Jakarta.
With the April 2019 inflation forecast of 2.64 percent, Mirza sees consumer price movements still under control. The inflation target targeted by BI is approximately 3.5 percent for this year.
Meanwhile, Adityaswara also saw a capital inflow that continued to enter the stock market and domestic government securities. BI recorded foreign funds that entered since the beginning of the year until the second week of April 2019 had reached Rp91 trillion.
“The inflow year to date has been included in the stock market of Rp16 trillion, while SBN is Rp75 trillion,” he said.
Even though last year, foreign funds entered the stock market were minus or negative. While the Government bond market is only Rp34 trillion (US$2.41 billion).
Then, he said, international trust was positive. The capital inflows up to the second week of April reached Rp 16 trillion.
Adityaswara revealed, investor perceptions of Indonesia are quite positive in 2019. Macroeconomic data was quite good and inflation was under control.
Furthermore, he projected the trade balance in the first quarter of 2019 to be a surplus. This condition has improved significantly in the previous year. The trade balance in the first quarter of 2019 is estimated to be surplus, with current account deficit  estimated to improve.
US$1: Rp14,100
Written by Staff Editor, Email: theinsiderstories@gmail.com