BKF Chairman: Fuel Price Increases to Cause Indonesia's Inflation

Jakarta, MINA – Febrio Kacaribu, The chairman of Fiscal Policy Agency (BKF) Indonesian Ministry of Finance predicted, fuel price increases will cause Indonesia’s inflation in 2022 from 6.6 percent to 6.8 percent.

“My prediction on inflation rate is higher than the government’s prediction four percent to 4.8 percent,” he said on Monday, September 5.

Based on the Central Statistics Agency’s record, the annual inflation rate in August was lower than the previous month.

Febrio also emphasized, the government will try to control the inflation rate below seven percent until the end of 2022 by controlling food prices and ensuring its distribution equally.

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The government announced an increase in fuel prices on Saturday, September 3. The Pertalite price rises from Rp. 7,650 to Rp. 10,000/liter, the subsidized diesel price soars from Rp. 5,150 to Rp. 6,800/liter, and the Pertamax price increases from Rp 12,500 to Rp 14,500/liter.

The government did it because of shifting fuel subsidy budget to welfare programmes. (T/ri/RE1)

Mi’raj News Agency (MINA)