ID :
12275
Fri, 07/11/2008 - 23:03
Auther :
Shortlink :
http://m.oananews.org//node/12275
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BI OPTIMISTIC IT CAN CONTROL INFLATION
Jakarta, July 11 (ANTARA) - Bank Indonesia (the central bank/BI) said the country's inflation rate has not reached an alarming level and expressed optimism it can be lowered using the available monetary instruments.
"We hope it will not (be worrying). The current inflation rate is chiefly fueled by global crude prices and must be viewed carefully. But the finance minister's statement that the fiscal side is still safe has raised the public's and the market's confidence in the economy," BI Deputy Governor Hartadi A Sarwono said on Friday.
He said the finance minister had stated that the state budget was still safe even though global crude prices hit another record high of US$150 a barrel. The statement made BI confident it could control the accelerating inflation rate fueled by last May's fuel oil price hikes.
"If things are that safe, let's not think of the worst scenario first," he said.
After all, BI would prepare all its monetary instruments to anticipate the likehood of worsening global economic conditions that would have an adverse impact on the national economy, he said.
"We will study the causes of inflation," he said.
He said the market's confidence in the Indonesian economy had recovered as reflected by the rising number of foreign investments in Bank Indonesia's short-term promissory notes (SBI), state bonds and the Indonesian share market.
"Our macro policies, particularly in the monetary field, are on the right track and this caused the market's confidence in the economy to recover although our inflation rate is still high at 11 percent," he said.
Under the current circumstances, BI would support all steps directed at strengthening the rupiah to keep the inflation rate down, he said.
The government has set its inflation rate target for 2008 at 11.25 percent.
The Central Bureau of Statistics (BPS) said early this month the June inflation rate reached 2.46 percent, driven by a 28.7 percent rise in fuel oil prices in May.
"We hope it will not (be worrying). The current inflation rate is chiefly fueled by global crude prices and must be viewed carefully. But the finance minister's statement that the fiscal side is still safe has raised the public's and the market's confidence in the economy," BI Deputy Governor Hartadi A Sarwono said on Friday.
He said the finance minister had stated that the state budget was still safe even though global crude prices hit another record high of US$150 a barrel. The statement made BI confident it could control the accelerating inflation rate fueled by last May's fuel oil price hikes.
"If things are that safe, let's not think of the worst scenario first," he said.
After all, BI would prepare all its monetary instruments to anticipate the likehood of worsening global economic conditions that would have an adverse impact on the national economy, he said.
"We will study the causes of inflation," he said.
He said the market's confidence in the Indonesian economy had recovered as reflected by the rising number of foreign investments in Bank Indonesia's short-term promissory notes (SBI), state bonds and the Indonesian share market.
"Our macro policies, particularly in the monetary field, are on the right track and this caused the market's confidence in the economy to recover although our inflation rate is still high at 11 percent," he said.
Under the current circumstances, BI would support all steps directed at strengthening the rupiah to keep the inflation rate down, he said.
The government has set its inflation rate target for 2008 at 11.25 percent.
The Central Bureau of Statistics (BPS) said early this month the June inflation rate reached 2.46 percent, driven by a 28.7 percent rise in fuel oil prices in May.
