"In general, inflation is as expected," Bank Indonesia Governor Agus Martowardojo said here on Friday.
Agus said there was no cause for concern with inflation in May, adding inflation would not exceed the target set by the central bank at 4.5 percent for 2014.
"What we are worrying about is trade balance. We hope that trade balance would continue to show good performance," he said.
He said it was possible the country had a deficit in April because of an increase in imports and falling prices of the countrys export commodities.
He said imports rose 11 percent in April compared with in March. and the prices of palm oil, rubber and coal, the countrys major export commodities declines in April.
In addition, demand for Indonesian commodities from major traditional markets such as China is a factor determining the countrys trade performance, he said.
"Instead of increasing, export declined . We should continue to keep surplus in foreign trade," he added.(*)
Editor: Heru Purwanto
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