Inflation Still A Focus, Coordinating Minister Airlangga: Central And Regional Synergy Needs

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said that the government is still focusing heavily on efforts to control inflation in the country in order to keep the national economy stable.

According to him, the inflation rate in Indonesia is quite moderate in the range of 4 to 5 percent. Even though inflation in various developed countries has penetrated up to double digits.

Global uncertainty, the food and energy crisis has put all countries in the world on the risk of high inflation. In fact, the exchange rate of currency for all countries against the US dollar is also under pressure," he said in a press statement quoted on Friday, September 30.

According to Airlangga, in order to overcome this situation, the central government seeks to strengthen cooperation between the center and the regions to be able to keep inflation levels under control, encourage price stability, and people's purchasing power.

"Synergy from the Central/Daerah Inflation Control Team (TPIP and TPID) continues to be carried out through various steps and programs, which aim to maintain price affordability, ensure supply availability, and ensure smooth distribution," he said.

Airlangga, who also serves as Chairman of the Central Inflation Control Team (TPIP), ordered regions to actively collaborate with other regions with food surpluses if they experience a deficit.

"TPIP and TPID must continue to identify surplus areas and deficits, as well as become facilitators to encourage cooperation in efforts to control inflation," he stressed.

In addition, local governments are also asked to take care of transportation costs from production locations to the market. This distribution fee can be borne by the APBD, both provincial and district/city.

"The local government can assist in production and transportation to maintain supply through General Transfer Funds (DTU) and Unexpected Expenditures (BTT) which are regulated through the Regulation of the Minister of Finance and Circular Letter of the Minister of Home Affairs," he explained.

Then, the inflation control measures also mandate local government support of about two percent of the General Transfer Fund to anticipate the impact of price turmoil due to fuel price adjustments.

"From the central government side, we have allocated the Regional Incentive Fund as an appreciation for local governments who have succeeded in controlling inflation. The assessment will be focused on local government performance in controlling inflation, which is calculated based on the realization of inflation from May to August 2022," concluded Coordinating Minister Airlangga.