'Inflation in Indonesia\r'

' obligate well-nigh Inflation Subject: Economy Submitted: Thursday, 29 November 2012 By: ID: 014201000039 Name: Joseph Amos P President University, Cikarang Baru, Bekasi, Ind onenesssia 2012 economics is the most important aspect of a country. The word of a country is seen in toll of thrift. political parsimony also become a benchmark of knowledge and prosperity in a country. Why does the scrimping become vitally important in a country? The word â€Å"economy” you hear about in everyday life and be never separated from our activities. Everything we do from opening the eyes to constraining my eyes again is inclusive of economic activity.Someone who is fitting to manage the economy well, it leave alone be seen by separate batch because of managements ability. Likewise with a country, a country will be seen by other countries through the economy. So what about the Indonesian economy itself? Definition of Inflation Inflation is the tendency of the ordinary prices fo r gen eral ascending and continuous or symptoms sight also be said of a proceed source in the prices of goods and factors of production general infinitely within a certain period. Keep in mind that the increase in the price of one or two items not called flash.Causes of Inflation, can be divided into command Side Inflation, which is caused by an increase in aggregate demand exceeds aggregate make out increases Supply Side Inflation, which is caused by an increase in aggregate supply exceeds aggregate demand Demand Supply Inflation, rising prices is caused by a combination of an increase in aggregate demand which is then(prenominal) followed by an increase in aggregate supply, so prices rise higher into Suppressed Inflation or a cover-up, the inflation at a clipping will arise and show themselves as the prescribed prices increasingly irrelevant in reality mixed bag of Inflation . Based on the Presence of utter(a) Inflation Inflation Light weightiness (under 10% a year) Inflation Medium (between 10-30% a year) Inflation weight (between 50-100% a year) Hyper inflation (over 100% a year) 2. By The reasons for the beginning of Inflation Inflation demand, because the demand for sundry(a) goods too strong Cost Inflation, due to uprising production costs 3. Based on the linage of inflation Domestic Inflation, inflation stemming from domestic merchandise Inflation, Inflation overseas Impact of Inflation PositiveIf inflation is mild, it has a positive effect in terms of stimulating the economy could be better, which is to increase the theme income and get mess frenzied to progress to, save and invest. tidy sum who rely on income based benefits, such as employers, are not harmed by the inflation. So it is with employees who work in companies with payroll following the rate of inflation. For people who borrow money from the bank (debtor), inflation is beneficial, because when debt payments to creditors, the foster of money are lower than at the ca dence of borrowing.Instead, the lender or the lender will sustain money because the value of the refund is lower than at the time of borrowing. For producers, inflation can be remunerative if the income is higher than the increase in production costs. When this happens, the manufacturers will be forced to double its production (usually occurs in large employers). Negative Impact of Inflation In the event of uncontrolled inflation (hyperinflation), the state of the economy went into chaos and felt sluggish economy.People become excited about work, savings, or investments and production as prices rise quickly. The fixed income earners such as civil servants or private employees, and the workers will also be overwhelmed tire and offset the price so that their bangs are expend away and fell from time to time. For people who sire a fixed income, inflation is very detrimental. Lets mete out the example of a retired civil servant in 1990. In 1990, his pension is complete to meet t heir needs, tho in the year 2003-or thirteen years later, the get power of money may only live a half.That is, retirement is no longer enough money to make ends meet. Inflation also causes people reluctant to save because the value of the currency goes down. Indeed, savings earn interest, but if the inflation rate on the interest, value for money is still declining. If people are reluctant to save money, businesses and the investment will be difficult to develop. Due to growing business needs of the banks funds earned from savings. Conclusion Indonesias economy had experient the ups and downs of the early proclamation to the reform era as it is today.Various strategies have been adopted by the Ministers of Indonesias economy in order to build a strong economy. Peak, Indonesia experienced a dramatic decline during the economic crisis that caused the inflation rate rising so rapidly at the end of the New Order era. The unemployment rate increase rapidly causing poverty increased r apidly as well. However, with each passing era into the era of economic reform Indonesia gradually showed improvement. Nurfaidah, R (2010). â€Å"Perekonomian Indonesia 2010. ” http://kandankilmu. blogspot. com/ count/label/Articles [Accessed 27 November 2012] Sadli, M (2006). Inflasi dan Pertumbuhan Ekonomi di Indonesia” http://kolom. pacific. net. id/ind/prof_m. _sadli/artikel_prof_m. _sadli/inflasi_dan_pertumbuhan_ekonomi_di_indonesia. hypertext markup language [Accessed 27 November 2012] Bayutube86 (2009). â€Å"Makalah Tentang Inflasi dan Dampaknya” http://cafe-ekonomi. blogspot. com/2009/05/makalah-tentang-inflasi-dan-dampaknya. html [Accessed 27 November 2012] Aryati, S (2010). â€Å"Pertumbuhan Ekonomi Indonesia Sangat Kuat” http://fararirureroduty. blogspot. com/2010/11/pertumbuhan-ekonomi-indonesia-sangat. html [Accessed 27 November 2012]\r\n'