REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia reported the country's inflation in the first week of Islamic fasting month from June 6 to 10 was only 0.59 percent.

Governor of the Central Bank Agus Martowardojo called for stringer coordination with the central government and regional administrations to control prices which are normally high during the fasting month and Idul Fitri.

Agus said the inflation in the first weeks of June was still in line with the target set by the central bank indicating the process of recovery is continuing.

He said he also noted positive indication with strong inflow of investment to the country and a decline in the value of Credit Default Swap to below 190 after rising to more than 200 in March-April-May.

As a monetary authority Bank Indonesia also noted pressure on the rupiah exchange rate until the first week of June especially on rising trend of transfer of fund abroad in dividends.

The increase in fund transfer and uncertainty over the fund rate of the U.S. central bank, resulted bin an increase in demand for dollar.

"The quarter II has indeed always been a period to be watch out. Foreign based corporations begin to make transfers in payments of dividends," he said.

Inflation in May was 3.33 percent year-on-year and cumulative inflation in the first five months of the year was 0.4 percent . In May alone the inflation was 0.24 percent.

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