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Bank Rakyat Indonesia (Persero) Tbk PT (ticker: BBRI.JK, exchange: Privately Held)
News Release -
Bank Indonesia Sees Inflation Pressure within RangeApril 17 (Bloomberg) -- Indonesia's inflation pressure is
within the expected range of the central bank, said Miranda Goeltom,
senior deputy governor at Bank Indonesia.
The price of food is the main indicator of inflation, Goeltom
told reporters today in Jakarta. The bank, which forecast the
inflation rate at between 5 percent and 7 percent for this year,
kept its key interest rate unchanged for the first time in 10 months
on April 5 on concern inflation may quicken.
``According to the latest data, inflation pressure is within
our range,'' Goeltom told reporters in Jakarta today. ``We remain
Bank Indonesia's key interest rate, used as a benchmark by
banks to set the interest rates they charge their borrowers, is
currently 9 percent. Indonesia's economic growth is set to
accelerate as the government boosts spending and companies increase
borrowings for expansion.
``Increased economic activity in Indonesia easily translates
into higher prices of transportation and other prices,'' Goeltom
also said today. ``We may see lower inflation pressures in general
when we have better infrastructure.''
President Susilo Bambang Yudhoyono's government is enacting
laws and offering tax breaks to attract $22 billion of investments
annually to boost growth in Southeast Asia's biggest economy, which
may spur construction of roads, ports and houses.
Indonesian government, in its 2007 state budget, assumes
economic growth of 6.3 percent, the highest in 11 years. Still,
Finance Minister Sri Mulyani Indrawati said on March 20 that
economic growth this year may be below the target at 6 percent on
lack of investment.