- VivaNews/ Nur Farida
VIVAnews - Chief of Economists at Bank Negara Indonesia, Ryan Kiryanto, figured that the benchmark interest rate set by Bank Indonesia this year may remain at six percent.
"BI (Bank Indonesia) Rate will be kept at six percent as the 2012 inflation is estimated to get higher that it was in 2011. The sustainment is also aimed at keeping the rupiah to make it against US dollar," Ryan told VIVAnews, today.
Ryan said the main issue which will affect inflation include future 10 percent rise of electricity rate and subsidized fuel restriction.
"The subsidized fuel restriction which will be applied in April will boost cost-push inflation," he said.
Inflation will touch slightly above five percent.
"The inflation this year will be between 5.3 and 5.5 percent," he said.
To date, the BI Rate had been cut twice along 2011: 50 basis points by October, and 25 basis points by November.
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