Indonesia Promises G20 Notes In The 2022 Presidency: Efforts To Resolve Global Inflation Issues Due To Pandemic

Coal is one of Indonesia's mainstay commodities which is currently being hunted by a number of European countries to secure energy stocks ahead of winter (Photo: Doc. Antara)

JAKARTA - The Indonesian government through Bank Indonesia (BI) has expressed a commitment to help resolve the issue of global inflation in the G20 Presidency for the 2022 period. This was conveyed directly by BI Deputy Governor Dody Budi Waluyo in a webinar today.

According to him, Indonesia will lead the discussion on world inflation in line with the rising prices of a number of commodities in the era of the COVID-19 pandemic.

"This is a form of scarring issues that is the reason behind the recent inflationary pressure story," he said, Monday, December 6.

Dody explained, in simple terms, the high demand for some commodities in the recovery era could not be met by the production side. This is what then makes prices soar and has an impact on the rate of inflation rising.

“It is true that there is an increasing demand, but don't blame demand because this demand has only moved up after yesterday at the beginning of the pandemic, demand was very minimal. Now (demand) has started, and it turns out that inflation occurs when production cannot cover demand,” he said.

Furthermore, Dody then studied from the supply or supply side which might be a solution to stabilize the inflation level.

"Do we have to address the supply problem because of the context of the scarring issues earlier?" he said.

Therefore, continued Dody, this is one of the main points that will be the subject of Indonesia's discussion in the G20 Presidency throughout 2022.

“These are points on the financial path that we have seen very responsive to all G20 members and have brought their attention. We will build cooperation and later we will come out with what is called G20 Notes, about how to exit policy strategy. Then, we will also try to solve problems from the context of supply and demand for joint economic recovery efforts," concluded Dody.