REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) believes Indonesian inflation rate will be lower in the future. To reach the target of inflation, the prediction must be controlled, the Director of Public Relations of BI, Difi A Johansyah, said.
The rising inflation, he said, should not be always responded by increasing BI rate. He indeed admitted some experts analyzed BI rate should be spiked. But, BI would not be presumptuous, he said. "If something happens fundamentally, we will change it," he said.
The May inflation was 0.07 percent, while the inflation from January-May has reached 1.09 percent and year on year inflation is on 4.5 percent. The inflation target set on revised state budget is 6.8 percent.
Central bank is looking for the optimum of economic growth and inflation. He believes that as long as the inflation is maintained, IDR exchange rate will be in a safe position. "If we want to suppress the inflation, we must ensure that the prediction is under control ," he said firmly.