0 Floods May Increase Inflation Rate

Finance Minister Agus D.W. Martowardojo on Thursday aired worries that the floods and heavy rains that have been hitting Indonesia of late may push the country’s inflation up by close to 1 percent. Agus said that recent downpours, along with the floods and landslides that they have brought about, were hindering the transportation of people and goods — especially essentials — and were causing retail prices to increase. The government has discussed the matter, he added, and has formulated plans to cope with the situation. 

“We must anticipate the upper range; it [inflation] may reach one percent,” Agus said. He recommended that the central and regional governments should coordinate with one another to deal with the issue in order to mitigate any potential harm to the economy. All citizens should remain vigilant, because the bad weather that has hit the country is expected to continue well into the coming months, he said. Regional governments, the finance minister added, should be more prepared and anticipate disasters. “These conditions have not seen their end — this is only the early period of the rainy season. Look at the impact in Jakarta. In the regions where the infrastructure is lacking, it could be worst,” he said. However, the minister said he believed the floods would not affect the country’s investment climate nor the state budget.

Investor Daily
source : the jakarta globe