"With the delayed rise in fuel oil prices, the inflation pressure will increase and that we must deal with it. As we all know we will launch market operations across Indonesia by involving state-owned companies," Finance Minister Agus Martowardojo said here on Thursday.
He said formal approaches were needed to prevent traders from raising the prices of commodities to excessive level.
"There need to be moral persuasion to address the situation like now and we have warned them (traders) against raising the prices of commodities. By doing so, we can contain (inflationary pressure)," he said.
The government needed to keep watch for the imminent inflation rate hike which might affect the assumed inflation rate of 6.8 percent in the revised 2012 state budget, he said.
"Unless care is taken (inflationary pressure) will last for a quite long time and that is not good. That`s why we must deal with it by conducting market operations and moral persuasion like what other countries have done," he said.
By doing so, he said the inflation rate would remain controllable and the prices of food commodities in regions would be stable.
"This is tantamount to controlling inflation in the regions. We are afraid that inflation rate in the regions will increase," he said. (*)
Editor: Kunto Wibisono
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