ID :
29005
Fri, 11/07/2008 - 19:49
Auther :
Shortlink :
http://m.oananews.org//node/29005
The shortlink copeid
BI CHIEF WELCOMES LOWERING OF SUBSIDIZED FUEL PRICE
Jakarta, Nov 7 (ANTARA) - Bank Indonesia (BI or central bank) Governor Boediono has welcomed the government's decision to lower the price of subsidized premium gasoline saying it could ease inflationary pressures.
"I think it is good. It will cut costs and boost production in a hoped-for way," Boediono said here on Friday.
Therefore, he said, he was optimistic the government's inflation rate target of 11.4 percent would be achieved, adding the central bank had predicted the year-on-year inflation rate would reach 11.5 to 12.5 percent by the end of the year.
"The inflation rate will be within the targeted range and I am optimistic it will be achieved," he said.
He said to achieve the inflation target and strengthen the economy, BI would continue to make efforts to overcome the current shortage of dollars.
"The shortage of dollars does not only happen in Indonesia but also in other countries and therefore we are trying to overcome it," he said.
Bank Indonesia Deputy Governor Hartadi A Sarwono said earlier that the central bank would continuously watch the rupiah's depreciation as it could cause inflation pressures toward the end of the year.
"What we must continue to watch is the impact of the rupiah's depreciation because it is the only factor that can increase inflation," he said.
He however predicted that the impact of the rupiah's depreciation would not be too big because there were already import adjustments.
"Several months ago it was still very high because imports were also high. But now imports are tending to drop so that the impact of the rupiah's depreciation is not too big," he said.
"I think it is good. It will cut costs and boost production in a hoped-for way," Boediono said here on Friday.
Therefore, he said, he was optimistic the government's inflation rate target of 11.4 percent would be achieved, adding the central bank had predicted the year-on-year inflation rate would reach 11.5 to 12.5 percent by the end of the year.
"The inflation rate will be within the targeted range and I am optimistic it will be achieved," he said.
He said to achieve the inflation target and strengthen the economy, BI would continue to make efforts to overcome the current shortage of dollars.
"The shortage of dollars does not only happen in Indonesia but also in other countries and therefore we are trying to overcome it," he said.
Bank Indonesia Deputy Governor Hartadi A Sarwono said earlier that the central bank would continuously watch the rupiah's depreciation as it could cause inflation pressures toward the end of the year.
"What we must continue to watch is the impact of the rupiah's depreciation because it is the only factor that can increase inflation," he said.
He however predicted that the impact of the rupiah's depreciation would not be too big because there were already import adjustments.
"Several months ago it was still very high because imports were also high. But now imports are tending to drop so that the impact of the rupiah's depreciation is not too big," he said.
