"Failure to keep inflation under control, will dent the economic competitiveness, and the interest rate could not be cut," Agus said on the sideline of an international seminar on "Structural Reforms in Emerging Asia" held here on Wednesday.
He said currently the domestic economy is growing healthier and it is partly attributable success in keeping inflation under control.
In 2015, the countrys inflation was 3.35 percent much lower than 8.3 percent in the previous year.
The low inflation was also attributable to improved trade balance and lower current account deficit, Agus said.
"In 2015, inflation was 3.35 percent . In the third week of March inflation was 4.53 percent year-on-year," he said.
Inflation in March was caused by food price hikes such as the prices of red onion, red chili.
Agus said cooperation between Bank Indonesia and the government including regional administrations remained good.
"Administered prices were also well under control partly as a result of subsidy abolition. Countries in ASEAN could keep inflation below 4 percent for 10 years," Agus said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2016
