Called By Jokowi To The Palace, Coordinating Minister Airlangga Admits Inflation Control Is A Challenge

Coordinating Minister Airlangga Hartarto (right) when facing the President at the Palace (Photo: screenshot of BI Youtube)

JAKARTA - Coordinating Minister for the Economy (Menko) Airlangga Hartarto today came to the Palace to report to President Joko Widodo (Jokowi) regarding the current situation of the national economy.

In his statement, Airlangga highlighted the inflation rate which was in a high upward trend.

“Mr President, we can convey that inflation control is facing challenges. Currently our inflation is 4.94 percent (year on year / yoy) at the end of July 2022," he said at the opening of the National Coordination Meeting for Inflation Control, on Thursday, August 18.

Airlangga explained that the movement in the upper range was caused by several factors, both from within the country and abroad.

"Inflation in 2022 is due to factors other than global commodities as well as weather conditions. Meanwhile, inflationary pressures in several regions are also related to production," he said.

Furthermore, Airlangga also said that food price volatility, which is the main aspect in raising the inflation rate, tends to start to slope and can be controlled.

“Food prices per day are relatively stable. The average price of rice is still strong at around Rp. 10,000. Then, the price of beef has started to fall," he said.

For information, the inflation rate has consistently continued to rise since February 2022, which at that time was at the level of 2.03 percent. The figure then shot up gradually to penetrate 4.94 percent at the end of last July.

In fact, the government and Bank Indonesia (BI) projected the amount of inflation this year to only be around 3 percent plus minus 1 percent. This figure was later revised to 4 percent to 4.9 percent for 2022.

For the record, MPR Chairman Bambang Soesatyo alias Bamsoet had given an official statement if this year's inflation rate could penetrate double digits.

“In September 2022, we are predicted to face the threat of hyperinflation with inflation rates in the range of 10 to 12 percent. The rate of increase in inflation, accompanied by soaring food and energy prices, is increasingly weighing on the people, who have just emerged from the COVID-19 pandemic," he said at the MPR Annual Session, Tuesday, August 16.