Cement and inflation

Cement and inflation

The announcement of new local benchmark prices for cement last
month has led to many comments which, in general, foresee a sharp
rise in the inflation rate for 1995, possibly exceeding the 10
percent limit. No less an authority than the Central Bureau of
Statistics anticipates that the increase in cement prices will
affect the rate of inflation.

With regard to those possible effects of the increased
benchmark prices for cement, the monetary authorities appear to
be quite confident that inflation will not be pushed up beyond 10
percent, as was expressed by Minister of Finance Mar'ie Muhammad.

The Finance Minister's optimism appears to be shared by the
Governor of Bank Indonesia, Soedradjad Djiwandono, who explained
that the inflation rate could be suppressed. We are sure the
authorities' optimism is supported by rational calculations,
which naturally will be translated into concrete action.

-- Suara Karya, Jakarta