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Finance minister sees anomaly in purchasing power

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Thu, November 9, 2017 | 01:04 pm
Finance minister sees anomaly in purchasing power Finance Minister Sri Mulyani Indrawati. (Antara/Puspa Perwitasari)

Finance Minister Sri Mulyani Indrawati claims to see an anomaly in the decline in people’s purchasing power in the third quarter as reported by the Central Statistics Agency (BPS).

The BPS revealed in its report on Monday that consumption grew 4.93 percent in the third quarter year on year (yoy) compared to 4.95 percent yoy three months ago.

Sri Mulyani said in Jakarta on Wednesday that the government would study the matter because while consumption reportedly dropped, inflation was low and there was an indication of growth.

Read also: Weak spending curbs Q3 growth

“[On the other side], wages in the agriculture and construction sectors did not increase,” said Sri Mulyani as reported by kompas.com.

She said President Joko “Jokowi” Widodo had instructed Cabinet ministers to immediately disburse social assistance for low-income families through various programs, including the Family Hope Program (PKH) and Village Fund Program, to increase people’s purchasing power.

Sri Mulyani said middle-class people preferred to save their money in banks rather than spend it.

The minister said she believed there had been a change in spending habits rather that a decline in people’s purchasing power.

 “I don’t think it's about purchasing power. Their [purchasing] activities have not been recorded or they are saving [their money,” she said. (bbn)

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