JAKARTA - The government through the Minister of Finance (Menkeu) Sri Mulyani gave a signal that the inflation book in September 2022 will be higher when compared to the previous months.
According to the Minister of Finance, this condition is caused by several factors. First, volatile food which is the main contributor to inflation.
"Such as those from wheat and cooking oil which are highly correlated with geopolitical situations," he said, quoted from the official website on Tuesday, September 13.
The Minister of Finance added that the second factor was the subsidized fuel price adjustment (BBM) at the beginning of this month, which averaged 30 percent.
"This policy, on the one hand, slightly releases pressure on the subsidy budget, but on the other hand increases administrative price inflation," he said.
However, the state treasurer claims that Indonesia is classified as a country with the ability to control inflation quite well amid pressure from food prices and energy which is quite heavy.
If you look at Indonesia's inflation last month, August from 4.9 percent (year on year/yoy) it fell slightly to 4.6 percent. Inflation usually occurs (will rise) in September," he said.
In dealing with this situation, the government called the Minister of Finance carried out several strategic steps such as strengthening the work of the Regional Inflation Control Team (TPID).
In addition, Bank Indonesia is known to tighten liquidity in the market and increase interest rates as a form of mitigation in maintaining domestic inflation and stability in the rupiah exchange rate.
In the midst of dollars that continue to strengthen, Indonesia's depreciation is around 4.5 percent light or moderate when compared to many other countries. This is because Indonesia's balance sheet performance is quite good," he said.
"The trade balance has been in surplus for 27 months, so we have more resilience on the external side, but we know that the global situation will not be easy," closed the Minister of Finance Sri Mulyani.
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