Minister Of Home Affairs Tito Orders Areas Affected By Inflation To Immediately Communicate With BPS-Bulog

JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian asked local governments (Pemda) whose inflation rates are still high to immediately coordinate with a number of related parties such as the Central Statistics Agency (BPS) to Bulog.

The Minister of Home Affairs said this coordination was needed to find the cause of the increase in inflation, as well as its control measures.

"Please sit together with the local BPS, then Bulog, then also with Bank Indonesia there, representatives, if necessary with employers' associations, such as Kadin or Apindo to find out what the cause is," Tito said at the Regional Inflation Control Coordination Meeting at the Ministry of Home Affairs Office, Jakarta, Tuesday, confiscated by Antara.

According to the Minister of Home Affairs, high inflation in an area can be influenced by many factors. This includes limited food supplies, rising prices regulated by the government, such as drinking water tariffs, to distribution problems due to weather or logistical barriers.

In fact, it is possible that there is a practice of hoarding goods by certain individuals. That's the need for us to conduct an evaluation," he said.

Tito said the current national inflation achievement is relatively under control by 2.31 percent year on year in August 2025. He emphasized that this achievement is in line with the government's ideal target, namely maintaining inflation in the range of 2.5 percent plus minus 1 percent.

Furthermore, the Minister of Home Affairs said that inflation should not be too low or too high. Inflation that is too low, for example below 1 percent, will make it difficult for producers such as farmers, fishermen, and industry players because the price is unable to cover production costs.

On the other hand, inflation above 3.5 percent will also harm the public as consumers because the price of demand is too high.

"The balance between fun producers and fun consumers. So that at 2.31 (percent) this is a very good number," said the Minister of Home Affairs.

However, he also reminded that there are several areas with inflation rates above 3.5 percent, such as North Sumatra, Central Sulawesi, South Papua, Southeast Sulawesi, Papua Mountains, Aceh, Riau, and West Sulawesi. For this reason, the Minister of Home Affairs encourages regional heads to be more intense in coordinating with various related parties.

On the other hand, he also highlighted the development of a number of commodities that affected the Price Development Index (IPH) in the third week of September 2025. He said the price of shallots experienced a significant downward trend.

Of the 309 regencies/cities that previously experienced an increase in the third week of August 2025, now only 31 regions remain in the third week of September 2025. Meanwhile, there are 303 regencies/cities that actually experienced a decline in the price of shallots in the same period.

"This is an interesting thing and it should be noted whether the consumption has decreased, I don't think so. Or maybe because there has been distribution equality," he said.

Not only that, rice commodities are also a major concern. The Minister of Home Affairs explained that the market operation which was held with Bulog and the National Food Agency (Bapanas) managed to suppress price spikes in many regions.

In the fourth week of August 2025, the increase in rice prices occurred in 214 regions, but in the third week of September 2025, the increase was recorded only in 106 regions. The number of regions that experienced a decrease in rice prices also increased.

However, there are a number of commodities that still need to be watched out for because the upward trend is quite high. These commodities include red chilies, broiler meat, and broiler eggs.