Standard Chartered Bank, the impact of poor infrastructure in Indonesia has an impact on inflation in recent times.

“The impact of poor infrastructure may have an impact on inflation,” said the senior economist and head of government relations, Fauzi Ichsan Standard Chartered.

He adds that poor infrastructure, the scope of the Indonesian archipelago, the inflation may vary by region due to poor infrastructure vary very similar. He gave an example of how inflation highlands of Papua. “The problem of inflation in Indonesia is no longer on major infrastructure of the Indonesia island. As the heavy infrastructure Papua, so that distribution problems and lead to higher inflation in Papua, he added

He went on this year’s relatively high inflation rate last triggered because the food was problem due to the unfavorable weather conditions, and strengthened to be explained by poor distribution.

“Exacerbated by the weather did not help, triggering last year because of the food, because the weather is good.” Not only the weather to food, but bad for retailers, “he added.

He later explained that the Indonesian production is not to compete with low prices, should have the opportunity to compete with an adequate infrastructure so the company could expand its activities. “The ability to restore the competitiveness of Indonesia, if you can not compete with cheap prices in competition with adequate infrastructure such as electricity sufficient collateral, provide a quick delivery and so on,” he added.