The Government And Bank Indonesia Compactly Narify Controlled Inflation Ahead Of Ramadan

Illustration (Photo: Doc. Ministry of Finance)

Coordinating Minister for the Economy Airlangga Hartarto said that the 5.51 percent inflation book at the end of 2022 was lower than the government's forecast of 6.5 percent.

According to Airlangga, the score was the result of joint work with the Central Inflation Control Team (TPIP) together with the Regional Inflation Control Team (TPID) and various related elements.

"TPIP and TPID will carry out a strategic agenda to achieve the 2023 inflation target, especially facing national religious holidays, namely Ramadan and Eid al-Fitr," he said in Jakarta Monday, February 20.

Airlangga revealed that the government is trying to achieve the target of 3 percent plus minus 1 percent in 2023 in order to strengthen and maintain macroeconomic stability and encourage national economic growth.

"The government ensures the availability of rice and food as well as the target to achieve volatile food inflation 3-5 percent this year," he said.

In line with Coordinating Minister Airlangga, Minister of Finance (Menkeu) Sri Mulyani said that Indonesia's inflation, which continued to decline to 5.28 percent in January, gave its own positive signal.

The reason is, this condition is inversely proportional to a number of countries that are still at double digits.

"Some countries have an inflation rate of 50 percent," he said.

Sri Mulyani stated that the APBN is committed to supporting efforts to stabilize in order to reduce price fluctuations that usually arise during Ramadan.

Fiscal support through the APBN continues to be maintained. The budget of IDR 104.2 trillion is channeled through various ministries/agencies to ensure food security. In addition, the acceleration of the implementation of food barns, the expansion of cooperation between regions, and the management of food availability data are several steps for the government to maintain supply availability," he said.

Previously, the inflation narrative continued to be voiced by Bank Indonesia (BI). BI Governor Perry Warjiyo said that the decline in inflation was a positive impact of monetary policy which was front-loaded, pre-emptive, and forward looking, aka related to rising interest rates.

"Inflation is down faster and lower than our expectations," the central bank boss told reporters.

Perry said that the Consumer Price Index (CPI) inflation would return to a normal level of 3 percent plus minus 1 percent in the second semester of 2023.

"Bank Indonesia will continue to strengthen coordination with the government to ensure the decline and control of inflation," Perry said.