REPUBLIKA.CO.ID, MEDAN -- Bank Indonesia (BI) office in North Sumatra is determined to curb the province's inflation rate to 4, plus and minus 1 percent to achieve the economic growth target of 5.8 percent in 2015.
"Inflation highly influences economic growth. So, inflation must be kept in check," Head of BI Representative Office for North Sumatra and Aceh Difi A Johansyah said here on Sunday (22/12).
North Sumatra's inflation rate could be lowered this year after it overshot to 10.18 percent last year, he said.
The inflation rate in 2019 was well above the inflation rates in 2011 and 2012 which reached 3.67 percent and 3.86 percent, respectively, he said.
The province's inflation rate could be kept down to 5.53 percent in the calendar year to November 2014, he said.
To achieve the inflation rate target, the North Sumatra Provincial Inflation Controlling Team (TPID) currently focuses on controlling the pries of five commodities which have so far contributed to inflation.
The five commodities are rice, red chilies, onion, beef and broiler chicken.
Besides maintaining production and supplies, the team has also tried to ensure smooth distribution of the commodities to avoid price upheaval, he said.
"We hope that next year there will be no policy that will send the prices soaring due to fuel price and electricity tariff hikes," he said.