The Indonesian Bank tightened the monetary policy National

The Indonesian bank (BI) decided to tighten the monetary policy in this year to anticipate all the risks together with the inflation pressure and the global economic unrest. The deputy Governor BI Budi Mulya to the Indonesian Media said various evaluations of the policy of continuing to be carried out on the dynamics of the national economy that happened at this time.

The strong signal took the form of the BI Rate rise 25 basis of the point became 8.25% showed the monetary BI policy direction in controlling the domestic request in order to stifles the risk of the jump of inflation in 2008. Our important target was to achieve low and continuous inflation, he said after attending Workshop Banking Associate of the Indonesian Journalist in Pekanbaru, on Sunday (11/5).

He explained the jump of the price of world oil that at this time penetrated US$125 per barrel far increased compared with the level at the beginning of the year that only around US$80-US$90 per barrel. That forced the government to raise fuel oil (FUEL OIL) around 30%. That not to mention the impact of the crisis subprime mortgage and the price increase of the global commodity pushed the price increase significantly, along with continue to the height of the request of the non-food thing, especially the plank.

As far as this is concerned, he continued, the development of the price of things experienced the high rise.
The accumulation of inflation was up until last April recorded by 4.01% or higher if against the same period in 2007 of 1.74%). Annually, IHK inflation in April this year has reached 8.96%. The jump of same inflation took part in being felt in all the areas, like in Sumatra that touched 9.7%. In matching this condition, BI must control the liquidity by carrying out the intervention in foreign currency and maintaining the volatility of the exchange rate rupiah.

Moreover, the evaluation must towards the BI Rate rise continue to be carried out related the rise in fuel oilL that will be carried out at the end the month later, he explained.(media-indonesia)