Although weather forecasts inform us that rainfall will be moderate at the start of this week, the peak of the annual rainy season will continue into mid February. This peak, which started in January, always causes severe floods in several parts of Indonesia as rivers overflow and heavy rain pours down from hills to the lower areas. Therefore, the possibility remains that floods will return in the next two weeks.

The floods also bring economic costs along as logistic costs rise because of disturbances to the distribution networks, thus resulting in inflationary pressures. Indonesia's central bank (Bank Indonesia) expects that the country's monthly inflation rate will be around one percent in January 2014. There have also been many reports about damaged roads in all parts of Jakarta as floods have caused potholes in the roads, increasing pressure on Jakarta's already fragile infrastructure. Moreover, an analyst of Jakarta-based Trijaya Pratama Futures said that trading at the Indonesia Stock Exchange has been reduced 20 percent since the flooding started.

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