INFLATION OF INDONESIA

What is inflation?

• An increase in the supply of money

• A decrease in the value of the currency

• A general increase in the prices of goods and services

• A reduction in the cost of living

Which institution is responsible for managing inflation in Indonesia?

• OJK (Otoritas Jasa Keuangan)

• Bank Indonesia

• Ministry of Finance

• BPS (Badan Pusat Statistik)

What is the primary tool used by Bank Indonesia to control inflation?

• Foreign exchange reserves

• BI 7-Day Reverse Repo Rate

• Tariffs on imported goods

• Subsidies

What is the target inflation rate set by Bank Indonesia for 2025?

• 2-4%

• 5-7%

• 1-3%

• 6-8%

Which of the following is a major cause of inflation in Indonesia?

• Decrease in demand

• Increase in interest rates

• Rising global oil prices

• Strengthening of the Rupiah

What is the effect of high inflation on the purchasing power of consumers?

• It increases purchasing power

• It decreases purchasing power

• It has no effect on purchasing power

• It stabilizes purchasing power

Which of the following is an example of cost-push inflation in Indonesia?

• Increase in taxes

• An increase in wages

• A rise in electricity tariffs

• Increased competition between firms

How does a rise in inflation generally affect interest rates in Indonesia?

• Interest rates decrease

• Interest rates increase

• Interest rates stay the same

• It depends on the government’s fiscal policy

What is a potential negative impact of high inflation on the Indonesian economy?

• Encourages more investment

• Reduces the value of savings

• Increases consumer spending power

• Improves employment rates

Which of the following sectors is most likely to be affected by inflation in Indonesia?

• Technology

• Agriculture

• Manufacturing

• All of the above