"Hence, by and large, we remain optimistic of the inflation rate being in line with the inflation target for next year," Indrawati remarked at the Ministry of Finance, Jakarta, on Tuesday.
The inflation rate can be maintained, as the government takes into account the needs of the middle- to lower-class communities in the posture of state spending at the end of the year until 2020.
Indrawati explained that the expenditure was intended to step up social security needs and human resources.
Hence, she opined that the rise in cigarette excise tariffs did not affect inflation and the people's purchasing power.
Furthermore, the minister noted that the government was keen to curtail and curb cigarette consumption owing to its ill-effects on health.
In the temporary posture of the 2020 state budget plan, the assumption of inflation rate is set at 3.1 percent.
The government’s earlier decision on a 23 percent excise hike next year will increase retail cigarette prices by 35 percent.
The excise tax policy targets lowering cigarette consumption, regulating the industry, and boosting state revenue.
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