Finance Minister Determines in Keeping Inflation at Low Level

Suci Sedya Utami    •    Kamis, 28 May 2015 16:02 WIB
Finance Minister Determines in Keeping Inflation at Low Level
Minister of Finance Bambang Brodjonegoro. ANTARA FOTO / Jessica Wuysang, Jakarta: Minister of Finance Bambang Brodjonegoro stated that the government is in accord with the House of Representatives' (DPR) aim to keep inflation in a low level. Next year, inflation is targeted at the level of 4 plus minus 1 percent.

"For that reason, connectivity between fiscal, monetary and real sector is needed in keeping low inflation, as maintaining the public's purchasing power," Bambang explained in the 31st Plenary Session of DPR at the Parliamentary Complex, Senayan, South Jakarta, Thursday (5/28/2015).

According to Bambang, inflation is a vital issue in maintaining household consumption and in the efforts of eradicating poverty. In a long term, low inflation may push forward economic growth to become more competitive in the ASEAN regional level.

As known, next year the government is relying on domestic factors such as increasing household consumption and investments in accelerating the targeted growth of 5.8 to 6.2 percent. For the fuel price policies, the government is to continue aligning it with the national inflation management, as the inflation will not be too sensitive with the fuel price hikes.

"We are also in accord on the synergy role of the real sector, as well as to control inflation in TPID and national group work in the regions in keeping the inflation," he stated.

In addition, the government agrees with the perspective of the House fractions on maintaining the volatility of Rupiah exchange to US Dollar assumed in 2016 State Budget (RAPBN) as much as Rp12,800 to Rp13,200 per USD.

"The government agrees that the volatility of Rupiah is vital to be maintained at a safe level, considering its large contribution to the stability of national economy," Bambang said in the Plenary Session.

Moreover, in maintaining the stability of exchange value, Bambang added the government has always coordinated with Bank Indonesia and other authorities. Aside from that, the government is to conduct multiple efforts, such as improving the Current Account Deficit and repairing the foreign exchange market micro structure.

"As well as observing the economy dynamics, increasing the synergy and coordination and preparing a mitigation measures for all available risks," he stated. (Eps)