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