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BI, ministers prepares six measures to curb inflation risks
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Bank Indonesia Governor Agus Martowardojo gives a statement to journalists on the sidelines of an event in Surabaya on Oct. 28, 2016. (JP/Anton Hermansyah)
B
ank Indonesia (BI) and the government have agreed to prepare six strategic measures to maintain the country's inflation this year, as consumer prices are predicted to be in an upward trend due to adjustments in levies and subsidies.
The set of measures was arranged in a “high-level coordination meeting” on Wednesday held among members of the Inflation Task Force (TPI) and Regional Inflation Task Force (TPID), which comprises officials from the central bank, ministries, state agencies and regional administrations.
Measures on the list include managing volatile food by improving food logistics infrastructure, especially storage for commodities, as well as managing transportation costs that could rise owing to the possibility of a hike in global oil prices.
(Read also: More imported sugar to enter market to control inflation)
"Inflation management this year faces several external and domestic challenges that should be anticipated and mitigated as early as possible," said BI Governor Agus Martowardojo in a press conference after the meeting at the central bank's headquarters.
Inflation is one of the biggest domestic risks for the economy this year. The government has carried out some measures to maintain a credible budget, such as a subsidy cut for 900 volt-ampere (VA) electricity. Agus said BI and the government agreed to manage inflation this year within the targeted range of 3 to 5 percent, with the figure in 2018 projected to be around 3.5 to 4.5 percent. (bbn)
