JAKARTA (Yosefardi) – Bank Indonesia (BI) predicts the national economy to grow by 5.4%-5.8% this year. This growth target will be supported by the government’s decision to set new prices for fuel.
The new price policy for fuel is expected to help the government to save Rp240 trillion from fuel subsidy. This fund will be allocated for infrastructure projects.
Meanwhile, the government targets the inflation to reach 4.5% plus-minus 1% while Bank Indonesia targets 4% plus-minus 1%.
In 2014, the inflation reached 8.36%. Lower crude oil price would reduce the prices of subsidized fuel in the country, then help reducing the inflation this year.