JAKARTA (TheInsiderStories) – Indonesia recorded a slight increase in its inflation in October, up 0.01 per cent over the previous month, with Consumer Price Index (CPI) recorded at 130.09, driven by a rise in processed food and housing products, Statistics Indonesia has confirmed. In September, the CPI was recorded at 0.13 per cent inflation.
The inflation rate for calendar year (January-October) 2017 stood at 2.67 per cent and the year-on-year inflation rate (October 2017 to October 2016) was at 3.58 per cent.
The product groups that recorded an increase in the month were discretionary food component, cigarettes, tobacco (which rose by 0.28 per cent); housing, electricity, fuel and gas component (rose 0.18 per cent); clothing component (increased 0.18 per cent), Health component (rose 0.21 per cent); education, recreation and sport component rose (0.16 per cent).
These products’ rise was capped by a decline of other product groups, namely, staple foods, which declined by 0.45 per cent, and transportation, communication and financial services, which fell 0.13 per cent.
BI has lowered its benchmark policy rate two times in a row, bringing the rate down by 25 basis points to 4.25 per cent for August-September. The last monetary rate cut carried out by the central bank was in October of last year.
The move was accompanied by plans to tweak credit rules in a bid to help stimulate commercial lenders’ loans and spur consumption.
Looking ahead, Statistics Indonesia underlines inflation trend in the first three quarters of this year, and particularly in December when there is a rising trend in Christmas and New Year period. If the government can manage inflation during this period, an inflation target range of 4 per cent will be achieved.
Foreign Tourist Numbers Rose 24.77 per cent
Meanwhile, the number of foreign tourists to Indonesia in September 2017 rose 20.47 per cent compared to the number of visits in September 2016, from 1.01 million to 1.21 million arrivals.
Similarly, when compared to August 2017, the number of foreign tourists visiting the country in September 2017 increased by 13.67 per cent.
Cumulatively (January-September 2017), the number of foreign tourists visiting Indonesia reached 10.46 million arrivals, for an increase of 25.05 per cent compared with the number visiting in the same period of the previous year, which totaled 8.36 million.
Room Classification Rate of star hotel classification in Indonesia in September 2017 reached an average of 58.42 per cent or up 4.26 points compared to the ROR of September 2016 which was recorded at 54.16 per cent. Similarly, if compared to TPK in August 2017, TPK star hotel classification in September 2017 rose 0.42 points.
The average length of stay of foreign and Indonesian guests at star-classification hotels during September 2017 was 1.97 days, notably stagnant when compared to September 2016.
By Yosi Winosa, Email: email@example.com