Government set to control inflation to maintain purchasing power

The inflation would be controlled at a range of 4.5 percent and 5.5 percent in 2014, chief economics minister Hatta Rajasa said.
Jakarta (ANTARA News) - The government said it would keep the countrys inflation under control this year to maintain economic stability and purchasing power of the people.

The inflation would be controlled at a range of 4.5 percent and 5.5 percent in 2014, chief economics minister Hatta Rajasa said here on Thursday.

"Keeping inflation under control is one of a number of steps to be taken by the government to forestall external threats and to maintain purchasing power of the people," Hatta said.

Other steps to be taken by the government is to maintain the quality of state spending to stimulate economic growth, creation of more jobs, improvement of competitiveness of export commodities, diversification of export markets and export commodities and improvement of the quality of products, he said.

He said capital spending will rise 6.7 percent to around Rp206 trillion in 2014 , mostly for infrastructure sector.

He said the market reactions to the government policy in mineral sector is positive.

The government partially implements its regulation banning exports of mineral ores starting January 12, 2014 in a bid to promote processing industry.

He said the government will also control imports of goods which potentially could hurt the domestic industry.

Another steps is to strengthen domestic trade to keep price stability, improve flows of goods and create healthy business climate, he said.

For that purpose, connectivity and transport facilities would be expanded and increased, he added.

He said the countrys economic growth in 2013 was estimated at 5.7 percent.

He said the government succeeded in curbing inflation and keeping it below previous estimate of 9 percent at 8.38 percent.

He also said progress also was made in reducing poverty to 11.7 percent and unemployment to 6.25 percent.(*)

Comments