Chief economic minister denies public purchasing power declines

Jakarta (ANTARA News) - Indonesias Coordinating Minister for Economic Affairs Darmin Nasution denied opinions from some quarters here on Wednesday that public purchasing power has declined.

"What are the indications?. They may possibly be able to just say that retail growth has been smaller. Is that true?. That is based on June while June is "Lebaran" (post-fasting holiday)," he said.

Darmin said in general every Lebaran consumption would slow down as people had spent a lot during fasting month and for Lebaran.

He said Lebaran also fell in July last year. "Just look at the data. It slowed down, didnt it?. I did not mean to say that it was not true. But let us just wait for July data, perhaps it will come out a week later," he said.

He also denied that the slowdown had to do with inflation which was considered too low recently.

"Whats the connection?. After Lebaran it declined. It is the same. Why?. It is because people reduce spending. Secondly July was also the beginning of the school year and so people held their money because they had to buy school equipment for their children," he said.

In view of that he said the government was not worried about the issue. "Why should we be worried. Let us just wait for a week longer to have a clearer conclusion about it," he said.(*)