JAKARTA - Former Minister of Finance Muhammad Chatib Basri reminded the government to be aware of the risk of price increases due to the weakening of the rupiah.
According to Chatib, the exchange rate pressure could hit the lower middle class because the price of goods could potentially rise.
"One of the important issues that must be considered is the possibility of the risk of price increases due to the weakening of the rupiah," said Chatib at the Presidential Palace Complex, Jakarta, Tuesday (9/6).
DEN member Firman Hidayat said that global pressure also needed to be anticipated. War and rising energy prices could increase production and distribution costs.
He said consumer inflation was still around 3 percent. However, the pressure at the level of large trade was higher.
According to Firman, the Wholesale Trade Price Index (IHPB), which is an indicator of prices at the wholesale level, is in the range of 5-7 percent. This pressure needs to be watched in the second semester.
The DEN assessed that market confidence in government policies needed to continue to be maintained so that economic pressures did not widen.
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