Indonesia plans to buy at least 3.5 million tonnes of rice fromfarmers to meet the stock of 1.5 million tonnes in 2011 as an effort tocurb inflation, a government official has said.
Indonesia ’sinflation rate expanded to 7.02 percent in January 2011 after hitting6.96 percent in December 2010, due to the soaring price of rice andchili.
Minister for Economy Harta Rajasa said the IndonesianLogistics Agency (Bulog) will soon start purchasing the rice as Februaryis the beginning of what promises to be a large harvest.
He said the amount held in reserve may increase to 2 million tonnes.
Additionally, Indonesia will continue with its policy to strengthen the exchange rate between the rupiah and the US dollar.
Indonesia ’s Central Bank forecasts that the country’s inflation ratewill fluctuate between 4-6 percent by the end of the year, whileeconomic growth will reach between 6-6.5 percent./.