Meanwhile, the estimated inflation in January 2022, on a calendar year basis, will be 0.53 percent (year to date/ytd) and 2.15 percent on an annual basis (year on year/yoy).
Inflation has remained at a controlled level, head of BI's communication department, Erwin Haryono, said in an official statement released in Jakarta on Friday.
The main contributors to inflation in January 2022 until the fourth week have been household fuel commodities (0.12 percent mtm), broiler meat (0.09 percent mtm), and tomatoes and rice at (0.05 percent mtm), he informed.
Furthermore, inflation has also been contributed by broiler eggs, powdered/liquid detergent soap, and filtered cigarettes (0.03 percent mtm each), red onions (0.02 percent mtm), and cayenne pepper, cooking oil, oranges, dry instant noodles, garlic, kale, granulated sugar, and gold jewelry (0.01 percent mtm each), he said.
Meanwhile, commodities that have recorded deflation include red chilies (0.05 percent mtm) and air transportation fares (0.02 percent mtm), he added.
BI will continue to strengthen coordination with the government and relevant authorities to closely monitor the dynamics of the spread of COVID-19 and its impact on the Indonesian economy from time to time, Haryono said.
Follow-up policy coordination steps that need to be taken will also be observed to maintain macroeconomic and financial system stability, as well as to support Indonesia's economic growth so that it remains sound and resilient, he added.
According to Bank Indonesia (BI), the national economy will likely grow at a faster pace this year compared to 2021.
It has made this projection in the Indonesian Economic Report, published along with Bank Indonesia's Annual Report and Indonesia Sharia Economic and Financial Report 2021.
"Under the Indonesian Economic Report, we convey our optimism in 2022 in detail. InsyaAllah (God Willing), the economy will perform better within the range of 4.7 percent to 5.4 percent," BI Governor Perry Warjiyo stated earlier.
Warjiyo forecast that inflation will increase in 2022, but will remain under control, to achieve the target of three percent, give or take one percent.
“The exchange rate will come under pressure this year. However, we have committed ourselves to maintaining the stability of the exchange rate in coordination with the Finance Ministry," he remarked.
The BI governor further urged the banking industry to increase the number of loans extended to the public.
Warjiyo forecast credit growth in 2022 will cross seven to nine percent.
"Let us increase the amount of credit and financing to help economic and business recovery that constitutes the power of our synergy, national economic policy synergy. Vaccination is a prerequisite," he remarked.
He expressed gratitude to the government for the expedited vaccination drive.
"InsyaAllah (God Willing), we will get the booster vaccination soon, so that the economic sector, fiscal and monetary stimuli, financing and reform in the real and financial sectors will soon open," he remarked.
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Translator: Sanya D, Azis Kurmala
Editor: Sri Haryati
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