Inflation 1.16% in January<\/p>\n
JAKARTA (JP): Increases in the prices of food, clothing and
\nhousing resulted in an inflation rate of 1.16 percent in January,
\nMinister of Information Harmoko announced yesterday.<\/p>\n
He told reporters after a limited cabinet meeting on the
\neconomy at the Bina Graha presidential office that the January
\ninflation rate was caused by a 1.65 percent increase in food
\nprices at the capitals of the country's 27 provinces, 1.14
\npercent rise in clothing prices, 1.01 percent hikes in housing
\nprices and 0.75 percent increment in the prices of other goods
\nand services.<\/p>\n
\"The January inflation was higher than the 0.52 percent
\ninflation last December but it was lower than the 1.25 percent
\ninflation in January 1994,\" said Harmoko.<\/p>\n
He said that the large increase in food prices was caused
\nmainly by a sharp rise in rice prices in various cities.<\/p>\n
\"Rice prices, for example, rose 10.81 percent in Ujungpandang,
\n8.98 percent in Manado, 8.49 percent in Surabaya, 7.52 percent in
\nSemarang, 7.75 percent in Jakarta and 7.05 percent in Padang,\" he
\nsaid.<\/p>\n
However, the rates of the rice price increases were still far
\nlower than the 11 percent recommended by the government.<\/p>\n
The government announced last October that the floor price of
\nhusked rice paid to village cooperatives by the national
\nLogistics Board (Bulog) should be raised by 11 percent to Rp 657
\nper kilogram in January.<\/p>\n
Harmoko said yesterday that President Soeharto, concerned
\nabout January's high inflation rate, had instructed the Central
\nBureau of Statistics (BPS) to study the reasons behind the
\nsoaring food prices.<\/p>\n
\"The President was concerned because (the rise occurred in
\nspite of the fact that) distribution of a number of foodstuffs
\nhas been improved,\" he said.<\/p>\n
The minister said that the government, in trying to control
\ninflation prior to the Idul Fitri holiday in early March, has
\nencouraged additional supplies of foodstuffs, particularly edible
\noil, sugar and flour.<\/p>\n
The monthly supply of edible oil, for example, is expected to
\nreach 175,460 tons, far higher than the demand, estimated at
\n137,485 tons, he said.<\/p>\n
He said that a few days before and after the Idul Fitri
\nholiday on March 3-4, the government will also provide additional
\nsupplies of meat, chicken and eggs at market places to prevent
\nprice escalation.<\/p>\n
Prices usually increase prior to the Idul Fitri holiday,
\nthereby causing a rise in the inflation rate. The inflation rate
\nin February 1994, one month before the same holiday, increased to
\n1.76 percent from 1.25 percent in the previous month.<\/p>\n
Export<\/p>\n
Yesterday's meeting also reported that Indonesia's exports
\nreached US$36.29 billion during the first 11 months of 1994,
\n$27.6billion of which was contributed by non-oil products and
\n$8.68 billion by oil and gas.<\/p>\n
Because imports reached only $28.65 billion, Indonesia enjoyed
\na trade surplus of $7.63 billion in the January-November period
\nof 1994, Harmoko said.<\/p>\n
He said that during November alone, the country's exports
\nreached $3.64 billion, while imports were recorded at $2.79
\nbillion, thereby resulting in a trade surplus of $855.8 million.<\/p>\n
The November exports consisted of $2.77 billion of non-oil
\nproducts and $874.8 million of oil and gas, he said.<\/p>\n
He said the meeting also reported that the country's money
\nsupply increased by 2.6 percent to Rp 45.62 trillion ($20.6
\nbillion) as of last December from Rp 44.43 trillion as of last
\nNovember.<\/p>\n
The December figure indicates that the money in circulation
\ngrew by 23.18 percent during 1994. Data at Bank Indonesia shows
\nthat the money supply was recorded at Rp 37.03 trillion as of the
\nend of 1993. (riz)<\/p>",
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