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JAKARTA. Coordinating Economic Minister Sofyan Djalil said on Monday that until the middle of this year, Indonesia’s inflation had been relatively controlled, although the inflation rate in July is supposed to approach 1 percent.
“Our inflation targets were well controlled during Ramadhan. The inflation rate increased in July but it was still good. This indicates that regional inflation control teams’ [TPID] work performances have been more effective,” he said as quoted by Antara in Jakarta on Monday.
Sofyan claimed such a controlled inflation rate showed that the government’s efforts to safeguard food commodity prices during the period of June-July were relatively successful, although the inflation rate could have been lower than what had been achieved.
“Ideally, the inflation rate was much lower than what we had achieved; but a 0.93 percent inflation rate in July is still relatively OK. The government’s efforts to ensure the smooth flow of goods and to control prices by carrying out market operations for several commodities such as chilies, rice and shallots have run relatively good,” said Sofyan.
He further said if the national inflation rate could be maintained at the current level until the end of this year, the government could achieve its inflation target of 5 percent, or perhaps slightly below this target.
“I think what we have achieved this year is relatively good. From year to year, inflation has been controlled well. I hope an inflation target of 4 percent, plus or minus 1 percent, throughout 2015 is still achievable. So far, the inflation rate has still been in line with what we have targeted,” said Sofyan.
Earlier, Central Statistics Agency (BPS) head Suryamin announced that Indonesia’s inflation rate in July stood at 0.93 percent, most of which was contributed to by increases in transportation tariffs due to the Idul Fitri holiday season.
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