RI Alami Deflation 5 Months In A Row, Jokowi: Keeping A Balance Is Not Easy
JAKARTA - President Joko Widodo (Jokowi) has been outspoken about Indonesia's five-month deflation.
He said keeping economic conditions under control and balanced is not an easy thing.
"Maintaining a balance is not easy and we will continue to try," said Jokowi after the TNI Anniversary Fun RUN activity at IKN East Kalimantan, Sunday, October 6.
Jokowi also said the importance of understanding the causes of deflation to ensure that national economic conditions remain under control and stable.
"Try to check properly the deflation because the prices of goods are decreasing because the supply is good, because the distribution is good, because there are no obstacles in transportation or because there is a decrease in purchasing power," he said.
Even so, Jokowi emphasized that inflation and deflation must be controlled. That way, it does not harm producers or consumers.
"However, whatever is called deflation and inflation, both must be controlled, so that stable prices do not harm producers, farmers can be fishermen, can be MSMEs, can be manufacturers but also from the consumer side, so prices don't go up either," he explained.
Jokowi said that year on year (yoy) inflation is still at a fairly good level of around 1.8 percent. Even so, he reminded that the figure is not too low.
"Control is what is needed, balance is what is needed and we are currently in the last year inflation year on year is approximately 1.8. good, but don't let it be too low either, so that producers don't lose money, so that farmers who produce do not suffer losses," he explained.
As previously reported, Finance Minister Sri Mulyani Indrawati believes that the deflation experienced by Indonesia in five consecutive months is a positive thing.
Because the deflation that occurred was caused by the volatile food price where the price of food ingredients was in stable condition.
"So, if the last five months of deflation is mainly contributed by the decline in food prices, in my opinion, it is a positive development, especially for people's purchasing power, especially in consumer communities, especially the lower middle class," he told reporters, Friday, October 4.
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Sri Mulyani said that based on the inflation composition side. The government continues to strive to keep inflation low because it determines purchasing power.
Because, inflation was previously influenced by volatile food.
"The high increase in inflation since last year was because it was heavily influenced by food or food," he said.
According to Sri Mulyani, if the volatile food is not handled properly, it will greatly affect people's purchasing power, because the average money used for consumption.
"So if food prices are stable or even decrease because at that time they did increase, it is a positive thing," he said.