The Indonesia's oil price hike will contribute between 2 percent and 3 percent on inflation rate, bringing the country's inflation between 10 percent to 11 percent, a minister said here Thursday.

Indonesian Coordinating Minsiter for Economy Aburizal Bakrie said that based on the current prices hikes resulted from the oil price hike, the contribution seemed less than 3 percent.

"If the contribution is 2 percent the inflation would be 10 percent, and if 3 percent it would be 11 percent," he said.

"Hopefully, in welcoming the Islamic festival of Idul Fitry, Chrismas and New Year Eve, the price can be controlled," he said.

Separately, Director of Research and Monetary Policy of the Indonesian Central Bank, the Bank of Indonesia Pery Warjito said that the prediction would happen on condition that the government not to issue any policy that could significantly affect on economy.

"It is predicted that the inflation next year will return to normal, may be in the second half it would be about 7 to 8 percent as long as there is no new policy," he said.

Although a member of the Organization of the Petroleum Exporting Countries, Indonesia imports significant amount of oil. The country sells fuel domestically at subsidized prices, so soaring world prices gives pressure on the economy and the government budget.

The condition prompts the government to increase oil price by 126.6 percent on average on Oct. 1, and provided cash to poor family to help them to be able to reach the price.

Source: Xinhua