Breaking the 6-7 Percent Inflation Projection, Bank Indonesia Continues to Coordinate with Central and Regional Government

JAKARTA - Deputy Bank Indonesia (BI) Doni Primanto Juwono said that inflation control must continue to be carried out together so that his party will continue to cooperate with the central government and regional governments.

"Out there, inflation is projected to reach 6 to 7 percent annually in 2022. Therefore, we must jointly lower it below that", he said at the launch of the National Movement for Food Inflation Control (GNPIP) in South Sulawesi, quoted by Antara, Monday, October 24.

He said that unlike other countries that are experiencing inflation, in Indonesia inflation is still accompanied by economic growth.

Meanwhile, Bank Indonesia has also taken various measures to control inflation, including raising the benchmark interest rate of the Bank Indonesia 7 Day Reverse Repo Rate by 50 basis points (bps) to 4.75 percent.

“The policy was taken to lower expectations by 7 percent. So we're overoothing it", he said.

Bank Indonesia also continues to maintain the stability of the rupiah exchange rate through market intervention to prevent imported inflation or inflation caused by imported goods.

"We are also cooperating with local governments, among others, through optimizing unexpected spending, maintaining supply, maintaining the smooth distribution of food goods, and strengthening food security", he said.

Bank Indonesia will continue to work hand in hand with the central and regional governments to create inflation control programs from upstream to downstream.

"My appreciation for the South Sulawesi Regional Government this time for organizing a low-cost market program, distributing seeds, so that it becomes the best Regional Inflation Control Team (TPID)", he said.