TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Bank Indonesia warns govt to ensure supply of basic commodities
Change Size
Bank Indonesia (BI) governor Agus Martowardojo speaks to journalist after the BI board of governors meeting on Feb. 18, in Jakarta. (Antara/-)
B
ank Indonesia has cautioned the government to anticipate possible shocks in staple food prices during the fasting month of Ramadhan and over the Idul Fitri holiday, on the back of looming inflationary pressure in June and July.
Indonesia's consumer price index (CPI) recorded inflation of 0.24 percent in May, with recorded month-to-month inflation of 0.32 percent for food and year-on-year 0.95 percent. Meanwhile, inflation also accelerated on rising airfares.
BI governor Agus Martowardojo acknowledged that although the price of onions was experiencing deflation, pressures on several commodities and airfare rates remained, and that the pressure would intensify during the homeward bound exodus of travelers for the Idul Fitri holidays.
"We need to pay close attention to staple food prices during the fasting month, Idul Fitri holidays and school holidays," Agus said in Jakarta on Friday.
Among the basic commodities to be watched out for are rice, beef, chicken, onions, chili and sugar.
Agus said the central government and local administrations should have coordinated to anticipate the inflationary pressure.
Bank Indonesia has set the inflation target in the range of 3 percent to 5 percent this year.
"We see conditions as still within that target,” Agus said.
Earlier, BI's executive director of communications Tirta Segara said the central bank would intensify its coordination with the government during the fasting month and Idul Fitri festivities in order to keep inflation in control.
The government has decided to allow imports for basic commodities, limited to certain quotas, including 27,400 tons of beef, 381,000 tons of raw sugar and 2,500 tons of onions, to stabilize supply in the market.
Unlike last year, the Trade Ministry has opened beef imports not only for state-owned firms but also private firms to achieve the its target of reducing beef prices.
"In accordance with the results of a coordination meeting last week, we have made the importation of some food no longer restricted to state-owned firms, but open to anyone who meets requirements," Lembong said.
The policy was made in response to an instruction from President Joko "Jokowi" Widodo to lower the price of beef from Rp 110,000 (US$8) to Rp 80,000 per kilogram ahead of Ramadhan, which will start next week. (dmr)
