JAKARTA. The Central Statistics Agency (BPS) has reported that Indonesia saw 0,19% inflation in March, bringing more hope for deflation in April after the government cuts fuel prices.

The year-to-date inflation stood at 0,62%, while the year-on-year figure was at 4,45%. Indonesia’s core inflation in March stood at 0,21%. Meanwhile, year-on-year core inflation was 3,5%.

Of 82 consumer-price-index cities, 58 experienced inflation in March while the other 24 recorded deflation. The highest hike in average prices occurred in Bukittinggi, West Sumatra: 1,18%.

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“If the onion and pepper prices drop, we will see deflation in April. Actually, the weight of pepper or red onion in inflation is not big, but the price fluctuations are so intense,” said BPS deputy head of distribution and statistics Sasmito Hadi Wibowo in Jakarta on Friday.

Indonesia, he further predicted, would face a climax in inflation in June, which is going to be the Islamic fasting month of Ramadhan.

According to the BPS, there were five main contributors to the March inflation, namely red onions, garlic, red chili, peppers and gold jewelry. Except for the gold jewelry, all the inflation contributors were related to crop failures that led to insufficient domestic supply.

Red onions and peppers led the price increases by recording 31,99% and 31,52% inflation in March, respectively. Both contributed 0,16% and 0,05% to overall inflation.

Sasmito showed his optimism about seeing moderate inflation at the end of the year as the government had started to open four out of six main ports to accelerate the distribution of commodities across the country.

Those four maritime highway hubs connect Tanjung Priok, North Jakarta, to Natuna in the South China Sea, as well as Tanjung Perak, East Java, to Waingapu in East Nusa Tengara and to Merauke and Timika in Papua.

“Maybe it explains why the government has not intervened in the price hike of onions and peppers, as they are confident about the distribution channels over the maritime highways,” Sasmito said.