Indonesia says it's working to become more resilient to inflation shocks from the U.S.

Indonesia is taking steps to marque its system much resilient truthful it tin withstand planetary shocks similar inflation, particularly from the United States, said Finance Minister Sri Mulyani Indrawati.

As the world's largest economy, what the U.S. does has beardown implications worldwide, including Indonesia, said the minister.

To combat inflation, the U.S. has hiked involvement rates, which has affected superior outflows due to the fact that of the strengthening of the dollar, Sri Mulyani told CNBC's "Street Signs Asia" connected Thursday.

In airy of that, the concern curate said, Indonesia is putting much effort to "increase our resiliency."

That includes "making definite archetypal that the fiscal assemblage is steadfast and beardown for this involvement complaint movement. Second, that the existent assemblage system is going to beryllium besides resilient successful bid for them to sorb this shock," said Sri Mulyani, who is attending the Group of 20 gathering of concern ministers and cardinal slope chiefs successful India this week.

In aboriginal February, the U.S. Federal Reserve raised its benchmark involvement complaint by a 4th percent point and gave small denotation it is nearing the extremity of this hiking cycle.

Unlike the United States, wherever ostentation remains stubbornly high, Indonesia's ostentation slowed successful January.

Headline user terms index, a cardinal indicator of inflation, dropped to 5.28% twelvemonth connected twelvemonth successful January from 5.51% successful December, according to authorities data.

Stripping distant volatile nutrient and vigor prices, halfway ostentation came successful at 3.27% successful January twelvemonth connected year, dropping somewhat from 3.36% successful December, information showed.

Last week, Indonesia's cardinal slope held its seven-day reverse repo complaint astatine 5.75%, pausing aft six consecutive hikes. But ostentation inactive remains good supra Bank Indonesia's people range of betwixt 2% and 4%.

Still, Indonesia has done good successful coordinating its fiscal and monetary argumentation tools to incorporate ostentation and support growth, said Sri Mulyani.

She added the authorities is besides supporting the cardinal slope to marque definite ostentation remains debased truthful that it doesn't wounded the purchasing powerfulness of its people.

"We besides cognize that the root of ostentation is not from the cardinal bank, from the wealth circulation oregon wealth supply. We besides spot that the ostentation is coming from immoderate proviso side. That's wherefore we addressed this issue," said Sri Mulyani, stressing ostentation volition mean this year.

Despite the planetary slowdown, Indonesia's economical maturation remains beardown arsenic home request continues to improve, the curate added.

"Last year, we had a precise bully twelvemonth successful presumption of growth. We are 5.3%.  I deliberation this is besides … the highest among the G-20 arsenic good arsenic the ASEAN countries," said Sri Mulyani.

This year, maturation is coming from home depletion and investment, which "are each recovering precise strongly," she added. "Consumer assurance is besides precise high."