Indonesia orders regional heads to keep food inflation below 5%

JAKARTA – Indonesia’s central government on Wednesday ordered regional heads to keep food inflation below 5 per cent as the recent hike in fuel prices could add 1.6 to 2 per cent to the inflation rate.

Chief Economic Minister Airlangga Hartarto said in a meeting growth in the third quarter would be at around 5.4 per cent and 5.2 per cent for the full year.

President Joko Widodo on Tuesday ordered a review of minimum wage and other labour rules, after trade unions staged nationwide protests against a recent hike in petrol prices.

The government raised subsidised fuel prices by 30 per cent earlier in September to rein in a spiralling energy subsidy budget, sparking protests by workers and students across the country.

The fuel price hike is set to accelerate inflation, which has already reached its highest since 2015 due to rising food prices. REUTERS