Jakarta (ANTARA News) - The Indonesian government seeks to keep inflation rate within 2.5-4.5 percent in 2018 and maintain public purchasing power by continuing some strategic regulations, including the application of Highest Retail Price (HRP) for some important commodities in the country.
Trade Minister Enggartiasto Lukita noted that in 2017, the overall inflation rate was under control. In fact, the inflation rate was at 3.61 percent, or below the governments target of 4.3 percent.
"We will keep trying to control inflation in the coming years, so that economic growth will not be in vain," he stated at a press conference here on Thursday.
Throughout 2017, several policies of the Ministry of Trade that were able to withstand the inflation rate included the establishment of regulations of HRP for rice, sugar, cooking oil, and frozen beef. For HRP of rice, the price is set based on the area and type of rice.
The Ministry of Trade also required business actors to report the availability of stock in their warehouses transparently.
Based on data of the Central Bureau of Statistics, inflation in 2017 rose when compared to previous years. The inflation rate in 2016 stood at 3.02 percent, while in 2015, it was at 3.35 percent. In 2017, the foodstuffs experienced inflation of 1.26 percent, with a contribution of 0.25 percent.
Higher inflation in 2017, compared to 2015 and 2016, was caused by the governments move to raise the electricity tariff of household customers by 900 volt-ampere (VA) electricity, as well as the increased cost of renewal of Vehicle Registration Certificate (STNK).
The increase in electricity tariffs contributed 0.81 percent to the inflation rate, while STNK renewal cost contributed by 0.24 percent, fresh fish commodity by 0.2 percent, rice by 0.16 percent, and chicken eggs by 0.1 percent.
Lukita remarked that although the annual rate of inflation rose, it was still within an acceptable limit by the government. With the maintained level of inflation, the purchasing power of the community will remain intact.
"By 2018, we will make more efforts to control inflation. We will not let prices rise excessively," he revealed.
Source: ANTARA News