Executing the task Head of Fiscal Policy Finance Ministry Bambang Brodjonegoro said provincial minimum wage increases may be one factor triggering inflation in 2013.

 Bambang Brodjonegoro by suarapengusaha

Executing the task Head of Fiscal Policy Finance Ministry Bambang Brodjonegoro said provincial minimum wage increases may be one factor triggering inflation in 2013.




"We are even more concerned about 'inflation' was the influence of the provincial minimum wage," he said in Jakarta on Friday.

According to Bambang, with the increase in wages of about 40 percent to 50 percent, then the predictable factors can contribute to the provincial minimum wage inflation rate of 0.2 percent-0, 3 percent.

"That's roughly 0.2 percent effect of inflation-0, 3 percent, but growth can also be increased due to rising purchasing power," he said.

Besides, he added, other factors should be wary because inflation is always consistently contributed annually ingredient food commodities especially rice.

"The key to inflation in Indonesia, when I noticed it was rice. So rice price stability should be maintained because it would be devastating," he said.

For that, Bambang expect, in 2013 the distribution and rice stocks maintained so as not to cause price volatility that can affect the rate of inflation.

"We're talking national distribution and supply awake, so if any spikes are still in a reasonable level," he said.

Government in the 2013 budget assumes a 4.9 percent inflation rate by considering the increase in electricity tariff by 15 percent. Meanwhile, in 2012 the national inflation rate stood at 4.3 percent.

Commodities which accounts for the rate of inflation in 2012 are rice which contributed 0.3 percent, 0.22 percent fresh fish, 0.2 percent of gold jewelry, filter cigarettes 0.19 percent and 0.19 percent of air freight rates.