Sri Mulyani Presses Inflation Data Must Be Credible And Accurate

JAKARTA - Allegations of manipulation of regional inflation data are questioned. Because, the Minister of Home Affairs (Mendagri) Tito Karnavian had explained that there were several modes carried out by regional heads to be manipulative in inflation in their regions to be good.

Minister of Finance Sri Mulyani Indrawati said that she had met with the Minister of Home Affairs of the Republic of Indonesia Tito Karnavian and there were some wrong inflation data and corrections had been made.

"I have checked with Mr. Tito, the Minister of Home Affairs. He said there were several but there were very few and corrections have been made," he explained to reporters, Friday, October 4.

Sri Mulyani emphasized once again that inflation data must be accurate and credible because the central government provides rewards to local governments so that these rewards do not create an attitude or action that actually distorts or changes the inflation rate.

Therefore, Sri Mulyani said that she had agreed with Tito Karnavian and all of them so that BPS could keep the inflation rate accurate and credible.

"For rewards, they must really come from achievements because prices are stable and good," he said.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Nathan Kacaribu, explained that there is an opportunity to withdraw the provision of inflation incentives if it is proven that the regions are manipulating inflation data.

"We'll see (revocation of incentives) later, yes," he explained.

To note, there are more regions receiving the allocation of fiscal incentives for controlling inflation in 2024 compared to the previous year.

As for 2023, recipients of fiscal incentives for the inflation control category are 33 regions per period. In 2024, recipient areas will increase to 50 regions per period so that regional opportunities to get fiscal incentive allocation will be greater.

Of the 50 recipient areas, 36 of them or around 72 percent are new areas that have never previously received an inflation control category award in the 2023 fiscal year.

Meanwhile, the total fiscal incentive fund for the 2024 fiscal year is IDR 8 trillion. Meanwhile, Regional Incentive Funds (DID) from the Ministry of Finance amounted to IDR 6 billion to IDR 10 billion. This budget is given every three months to regions that successfully reduce the inflation rate and keep it stable.