VIVAnews - The government acknowledged that it will be difficult for the inflation rate to drop below six percent.
"The inflation rate in Indonesia is not like it is in the international community," said Finance Minister Sri Mulyani said on Monday, Jan 5. Should it refer to the international inflation rate, it will average at three percent.
In addition, inflation rate in Indonesia could easily touch two digits. Last year, the inflation rate in the country reached 11 percent. In fact, in 2005, as the government raised fuel prices, the inflation rate hits 17 percent.
Finance Minister said that the high inflation rate in Indonesia is due to the pricing mechanism in the country.
To solve the problem, the Department of Finance and the central bank, Bank Indonesia, will continue to examine various issues that may cause inflation.
Translated by: Bonardo Maulana Wahono
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