http://www.thejakartapost.com/news/2013/02/11/papua-face-high-inflation-february-bi.html

The Jakarta Post, Jayapura | Archipelago | Mon, February 11 2013, 3:07 PM

 

The Consumer Price Index (CPI) for Papua and West Papua will remain high in February due to shortages and extreme weather, Bank Indonesia’s (BI) Jayapura office said in a statement.

“Entering February 2013, the BI sees that there is a need to anticipate price increases that can cause high inflation rates in Papua and West Papua,” BI Deputy Head for Papua and West Papua Aslan Lubis said in Jayapura on Monday, as quoted by Antara news agency.

Aslan said that inflation in the provinces topped 0.40 percent in January, pushing year-on-year inflation to 4.87 percent.

“As extreme weather will continue to happen until the end of February, commodity prices, including fish and palawija, or crops planted as second crops in dry season, such as legumes, will increase by about 4 to 15 percent,” he said.

Aslan said that high demand also contributed to inflation in January.

The government should take steps to reduce inflation in the provinces, including promoting local production of foodstuffs, improving logistics, developing infrastructure, improving loading and unloading at ports, and improving cash payments (BLT) to local residents, Aslan said.