Minister of Finance Purbaya Reports to Prabowo: Real Inflation 2.59 Percent, Economy Can Still Be Driven

JAKARTA - Finance Minister Purbaya Yudhi Sadewa reported before President Prabowo Subianto that February's inflation was not as high as the headline figure of 4.64 percent.

During a cabinet meeting at the State Palace, Friday, March 13, Purbaya said real inflation was only around 2.59 percent after the electricity subsidy component in January-February last year was excluded from the calculation.

"If we remove the electricity subsidy data for January-February last year, in fact our inflation is only around 2.59 percent, sir. So we are still safe to grow faster, the economy is not hot," said Purbaya.

He also reported that Indonesia's manufacturing Purchasing Managers' Index in February was at 53.8. According to Purbaya, this figure is one of the highest in recent years and shows that the manufacturing sector is strengthening.

In terms of demand, Purbaya said Mandiri Spending Index was at 360.7 and the trend was up. Car sales in February also grew 12.2 percent, reversing from last year's negative position. Retail sales are said to have risen to 6.9, while the consumer confidence index is at 125.2.

"Supply, demand are all in good health until February," said Purbaya.

He also dismissed the notion that the Indonesian economy was entering a recession. According to Purbaya, the data available actually showed acceleration, both in terms of production and consumption.