The planned increase of electricity tariff in early second half this year will not create a significant impact to drive inflation, the central bank said.
"The impact will not be significant. We don't see any problem," acting Bank Indonesia (BI) Governor Darmin Nasution said Friday.
The central bank maintains its inflation target of between 4 percent and 6 percent this year, he added.
BI said the economy would likely expand between 5.5 percent and 6 percent this year on the back of stronger recovery domestically and globally. It revised its earlier prediction of 5.2 percent.