THIS YEAR'S INFLATION POSSIBLY BELOW THREE PERCENT : MINISTER

Jakarta, Dec 11 (ANTARA) - Finance Minister Sri Mulyani said this year's inflation rate could turn out to be below three percent because in terms of monetary stability what had happened in 2009 was "all good."

"From the stability point of view what has happened in 2009: inflation, interest rate and rupiah exchange rate were all good. In 2009 the inflation rate will possibly reach below three percent with the rupiah exchange rate appreciating the best extent in the world," she said at a meeting on national development planning here on Friday.

She said in 2009 the inflation rate in Indonesia was quite good and low so that in 2010 it was expected to remain low despite increasing inflationary pressures.

She said it was expected the rate of inflation in 2010 would be at a five percent level, plus or minus one percent.

Coordinating Minister for the Economy Hatta Radjasa shared the view saying this year's inflation was expected to reach three percent.

"Inflation is expected to be three percent or below three percent," he said on the same occasion.

The head of the Central Bureau of Statistics, Rusman Heriawan, said he predicted this year's inflation would be around three percent. This is because December's inflation was not yet normal while the prices of commodities were also still low, he said.

He said with the January-November annual inflation at 2.45 percent inflation in the 2009 entire year was predicted to be around three percent or a bit lower or higher than that.

He said inflation pressure in December was expected to come from the price of rice due to year-end seasonal factors. Transportation sector is also expected to rise, he said.

He said the price of chili which had earlier become an inflation driver was predicted to drop sharply this month.

"So based on the past two weeks of observation I think inflation could be far below one percent because the price of some commodities such as red chili has dropped very sharply although the price of rice has risen a bit. We have however not yet accounted the price of transportation which is rising ahead of the Christmas holiday. Year-on-Year the rate of inflation this year could slightly below three percent or slightly above three percent," he said.

The director of macro-planning of the National Development Planning Agency, Bambang Prijambodo, also shared the view saying this year's inflation could around three or even, though a bit, lower than three percent.

He said the global price of various commodities was not still quite low while supply was also still secure.

"World demand has not yet been normal so that the price of commodities is still quite friendly," he said.