Indonesia’ May inflation recorded at 0.68 percent, the highest point of the year - Photo by Statistic Indonesia
JAKARTA (TheInsiderStories) — Indonesia’ May inflation recorded at 0.68 percent, the highest point of the year. Fasting month of Ramadan and surging price of airline ticket contributed the incline, said the Statistics Indonesia reported today (06/10).
While, the January to May inflation is at 1.48 percent and the yearly inflation is at 3.32 percent. Even so, its claimed as still under control, as Indonesia targeted around 3.5 percent inflation this year.
“I conclude that the May 2019 inflation is under control,” said Head of Statistics Indonesia Suhariyanto at his office, Jakarta.
He stated, inflation occurs because of a hike in prices as indicated by the increase in the entire expenditure group index, namely the foodstuffs group by 2.02 percent, also processed foods, beverages, cigarettes and tobacco price increased by 0.56 percent, during Ramadan when people buy more stuffs.
Transportation communication and financial services group by 0.54 percent, amid the critics over the surging price of airfare. Moreover, there are increasing prices in clothing by 0.45 percent, health by 0.18 percent, housing, water, electricity, gas and fuel by 0.06 percent, also education, recreation and sports group by 0.03 percent.
All 82 cities are simultaneously experienced inflation, but Merauke, Papua Province which having deflation. Tual, Maluku Province has the highest inflation with Kediri, East Java has the lowest one.
In April, the monthly inflation was 0.44 percent, contributed from food material component and transportation. While in March, the monthly inflation was quite high at 1.11 percent.
In February, Indonesia recorded 0.08 percent deflation. And 2019 was started with 0.32 percent inflation in January.

The Government and Bank Indonesia (BI) agreed on three strategic steps to keep inflation within the target range of 3.5±1 percent in 2019.

Firs steps, the officials said, its to maintain price affordability, supply availability, smooth distribution, and effective communication. In the National Inflation Control Roadmap 2019-2021, the policy is pursued by giving priority to availability of supply and smooth distribution, which is supported by a more conducive ecosystem and the availability of accurate data.

Second, strengthening the implementation of the National Inflation Control Roadmap 2019-2021 and also implementing the Roadmap for Inflation Control at the Provincial level. And third, strengthening the coordination of the central and regional governments in controlling inflation through the holding of the National Inflation Control Coordination Meeting.

BI said, the inflation rate in the last four years has been positive. This is supported by the synergy of monetary and fiscal policies in managing healthy macroeconomic conditions and structural policies, including infrastructure development in various regions that improve connectivity and smooth distribution.

Going forward, the government at the central and regional levels also the central bank will continue to strengthen policy coordination to bring inflation in a downward trend in the range of 3±1 percent in 2020 and 2021, so it can support strong, sustainable, balanced and inclusive economic growth.

BI’ Governor Perry Warjiyo stressed that food supply and distribution is more than enough. Moreover, the central bank claimed a manageable Rupiah depreciation. He revealed, that BI will coordinate with the central and regional government to maintain low inflation.

Foreign inflow keeps coming to emerging countries like Indonesia. Until Jan. 17, there were Rp14.75 trillion (US$1.03 billion) foreign inflow entered almost all instruments. Government securities is the highest instrument penetration by foreign investors, with Rp11.48 trillion then Rp3.21 trillion entered stocks market.

The figure is still lower compared to the previous month. In December 2018, foreign inflow reached $1.9 billion. But Warjiyo believed that the continuing foreign inflow is due to Indonesia’ low investment risk and good domestic economy condition.

US1: Rp14,300

Written by Staff Editor, Email: theinsiderstories@gmail.com