INFLATION IN 2009 BELOW SIX PERCENT: MINISTER

Jakarta, Jan 30 (ANTARA) - Finance Minister Sri Mulyani Indrawati said inflation in 2009 can be below six percent as an impact of the government's policy to lower fuel oil prices, transport fares and commodity prices.

"Inflation this year is expected at a range of 5 to 6 percent," the finance minister who is also acting coordinating minister for economic affairs, said at the State Palace here on Thursday.
She said that the fuel oil price cuts could contribute to the reduction of inflation by 0.53 percent.
"This is a hope that is likely to happen except if there is flood that could hamper distribution. Technically commodity prices could still go down. We hope it would happen," she said.
The 5-6 percent estimate is lower than that set at the state budget at 6.2 percent, let alone if compared with the 11.06 percent inflation in 2008.
Sri Mulyani said that the 5 - 6 percent estimate was also lower than the target set by Bank Indonesia (BI/the central bank)at a range at 6.5 to 7.5 percent.
The Indonesian central bank itself is of the view that the 2009 inflation rate would be lower than that in 2008, due to the drastic cuts in fuel oil prices. Besides, the world crude price is expected to remain stable at a range of US$40 to US$70 per barrel.