Antara News and Tempo are reporting that Bank Indonesia (BI) has predicted inflation levels will come close to their initial 3-percent prognosis (plus or minus 1-percent) in 2023, as the Indonesian central bank projects below 4-percent inflation during next year’s third quarter.
“We estimate that in the third quarter of next year it will be around 3.6-percent,” said the Governor of Bank Indonesia Perry Warjiyo on the side lines of the IMF-WB meeting in Washington D.C., on Thursday, October 13, say Antara News.
Previously, BI estimated that the inflation rate until the end of 2022 would increase above 6-percent Year-on-Year (YoY). This spike in inflation is the impact of rising fuel prices (BBM) and transportation fares. However, it is claimed that the increase is still below the global average of 9-percent inflation.
Global inflation spiked due to geopolitical conflicts in Europe which resulted in rising energy and food prices.
According to Perry, the inflation target can be achieved through sustainable synergy with the government that has been established so far. He was also grateful as Indonesia’s fiscal condition is still relatively strong.
“We are grateful that in Indonesia the government’s fiscal policy and monetary policy are so strong. BI remains independent but independent in the spirit of interdependence togetherness,” the Bank Indonesia governor added.
Sources: Tempo, Antara News