The Minister Of Industry Expressed The Cause Of The Republic Of Indonesia's Five-Month Deflation: High Imports Of Cheap Goods

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita opened her voice regarding the deflation that occurred five times from May to September 2024.

The Minister of Industry assessed that in terms of the deflation industry that occurred in a row in the country, it was influenced by the flood of imported goods entering Indonesia.

Thus, the supply of imported goods has become large and has an effect on the domestic industry.

"Regarding the deflation earlier, we agree that the purchasing power is reduced. The purchasing power has decreased, the imports of cheap goods are getting higher. (So) market flooding, demand is not available. That's deflation," said Minister of Industry Agus when met at his office, Thursday, October 10. August did not deny, that currently people's purchasing power is indeed decreasing. Thus, demand for goods and services is lacking.

"The purchasing power, right, is reduced, which I agree. So, demand, right, is lacking, this is in manufacturing glasses," he said.

According to him, at the time the demand for goods and services decreased, the supply continued. Agus said the incoming supplies were imported goods.

"The demand is reduced, but the supply is not. The supply is imported goods, this is simple. From manufacturing glasses, that causes deflation. The purchasing power is reduced, while the supply comes from imported goods," he said.

To overcome this, Agus assessed that a revision of the Minister of Trade Regulation (Permendag) Number 8 of 2024 concerning Import Policy and the transfer of entry ports or entry points for imported goods to eastern Indonesia.

"What is the government's move? I, really, want a revision of the Permendag 8. Second, I am consistent, I want the entry points to be shifted to the east immediately to make it difficult (to enter) imported goods," said Agus.

"So, the flood of items is at least delayed. (Imported goods) will enter Java, but at least it will be delayed and will increase the price or cost. At least," he added.

Previously, the Central Statistics Agency (BPS) noted that there was a deflation in September 2024 of 0.12 percent on a monthly basis or month to month (mom). This figure is higher when compared to August 2024, which is 0.03 percent.

Acting (Plt) Head of BPS Amalia Adininggar Widyasanti said deflation in September 2024 was deeper than in August 2024.

"There was a decline in the consumer price index from 106.06 in August 2024 to 105.93 in September 2024," he said at a press conference in Jakarta, Tuesday, October 1.