Jakarta (ANTARA News) - Bank Indonesia (BI/the central bank) Deputy Governor Muliaman D Hadad said the inflation rate, even though its was snow showing an upward trend, was still manageable.

"So far we are still able to manage the inflation," the BI deputy governor said in the World Economic Forum at Sangri-La hotel here on Sunday.

He said that the appreciation of the local rupiah currency of late had given a number of advantages to Indonesia in its efforts to take the inflation rate under control.

"We are optimistic that we would be able to manage the inflation in the country this year," Muliaman said.

He said that possible energy and good price turmoil was a challenge Indonesia was facing in managing the inflation.

"There are factors that could boost inflation but those factors are beyond our areas," the BI deputy governor said.

The same opinion was also voiced by Finance Minister Agus Martowardojo who said that energy and food were a challenge in the management of inflation.

"But prudent economic policy is a key to minimizing the impacts that might arise," he said.

Legislator Arif Budimanta of the House of Representatives (DPR)`s Commission XI on financial affairs, reminded that up to now the annual inflation rate was still high, despite the fact that the inflation in May 2011 was low and the presence of a deflation in April.

He said that yearly inflation rate was still high, almost reaching six percent (5.98 percent), particularly for food which reached 10.22 percent if compared with that in May 2010.

The legislator of the Indonesian Democratic Party of Struggle (PDIP) said the inflation rate in the clothing sector was also high, namely 7.77 percent.

The Central Board of Statistics (BPS) recorded the inflation rate in May 2011 at 0.12 percent and in March at 0.32 percent and April a deflation of 0.31 percent.

Editor: Priyambodo RH
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