- Adri Prastowo
VIVAnews - The Indonesian Institute of Sciences (LIPI) figures that the nation in 2012 will have 5.5 percent of inflation rate, higher than this year's 3.53 percent.
Exchange rate, food, fuel, and electricity pricing will be among other factors which will affect inflation rate. An economist at LIPI, Agus Eko Nugroho, said the exchange rate next year will be depreciated against US dollar.
"The growth of food supply will not be as high as food demand as well," he said.
The government's plan of restricting fuel consumption, he said, will also contribute to inflation rate.
Agus believes the European debt crisis will help build negative outlook as Indonesia is anticipating the decreasing volume of exports to European countries.
"Until October 2011, Indonesia exports to Europe reached 12.7 percent. It's not surprising that the Indonesian economic growth next year will not be any better than this year is," he said.
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