Bank Indonesia Rate 6,5 Percent until May

Thursday, March 4th, 2010 17:23 WIB, Jakarta

BI rate was predicted will keep hold out in its position now, 6, 5 percent until May soon.

“We predict that BI will increase refer to rate in June 2010,” said Chief Economist Mandiri Sekuritas Destry Damayanti on workshop media in Jakarta, Thursday (4/3). This is accordance with inflation expectation coming. Economy activity which was begun restored will accompanied with the increase of domestic demand can increase the inflation pressure.

Inflation was predicted will reach 6, 3 percent in this year or rise from the inflation last year which is 2, 8 percent. “As a result, BI rate will adjust increasing 75 basis point become 7, 25 percent,” she said.

According to the prediction of Statistic Corporation Center which predicts that deflation will occur on this March, Destry said that it was proper linked with the harvest going on. She worried the jump up of inflation this year because the existence of rigidity in supply side.

“We still experience supply constraint problem. Supply was not flexible because there is limitedness, such as, there is someone who wants to invest but there is infrastructure limitedness or rules which is not conducive in region.”

In other hand, Destry continued, strengthening of exchange rupiah value factor has potential to decrease inflation pressure. Domestic rate of exchange was predicted increase because economy in this country rather solid and improve of export and increasing of income.

Per January 2010, export got income around US$11 million and portfolio income which reach US$1, 6 million


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