REPUBLIKA.CO.ID, JAKARTA -- Indonesia's inflation rate in the second week of June 2017 rose 0.5 percent month-to-month, fueled by a rise in transportat fares and electricity tariff for 900-VA household customers, according to Bank Indonesia.

However, Bank Indone6sia Governor Agus Martowardojo is optimistic the yearly inflation could be kept at a target range of 3 to 5 percent at the end of the period of high consumption as a result of the fasting month of Ramadhan and subsequent Eid al-Fitr later this month.

Until the second week of June 2017, the inflation rate reached 4.17 percent year-on-year.

"We hope the inflation rate will remain the same as the results of our latest survey at 4.17 percent year-on-year in June. However, the survey was conducted until the second week (of June)," he said.

The effort to control the inflation rate has proven effective, he said referring to the increasingly stronger coordination with the central government, regional governments and the police in controlling the supply and distribution of foodstuffs during Ramadhan.

In May 2017, BI announced the results of its survey which showed the yearly inflation rate would reach 4.36 percent year-on-year, lower than the results of its previous survey in April 2017 which put the inflation rate 4.63 percent year-on-year.

"We praised the central and regional governments for their efforts to keep the inflation rate under control. We have evaluated the inflation rate recorded in our study two days ago. We believe the inflation will be safe as the supply of goods can be controlled," he said. 

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