VIVAnews - The government targets the inflation rate in the 2010 state budget to reach 5 percent, which is seen to be achieved with the help of the central bank Bank Indonesia.
According to Finance Minister Sri Mulyani Indrawati, Bank Indonesia has a high influence to control the inflation, that is based on the mandate of Bank Indonesia Law on main inflation indicator control.
"The inflation comes from the number of the circulated money which affects the demand," said Indrawati in Jakarta on Wednesday, Sept. 30.
Bank Indonesia will also determine the price stability affected by the rupiah exchange rate volatility. Meanwhile, the government will optimize the subsidy influence on the inflation and the solution to overcome obstacles, distribution problems and stock scarcity.
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Translated by: Ariyantri E. Tarman
