Government Calculation Brings Inflation Down 2.5 Percent Next Year

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JAKARTA The government through the Ministry of Finance is targeting inflation of 2.5 percent plus minus 1 percent next year. The target is listed in the 2024 State Budget Bill which is currently being discussed with the DPR.

Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said that the government had prepared a number of strategic steps to celebrate the target.

"The keys to achieving the inflation target are the APBN and the APBD playing a significant role as a shock absorber in controlling inflation," he said during a working meeting with Commission XI of the DPR, Thursday, August 31.

Suahasil explained that the government will also strengthen the function of the Central/Regional Inflation Control Team (TPIP/TPID) which has been proven to control food inflation this year.

"We will maintain food supply stability and through price intervention policies. This is what we will do in a synergy between the government, BUMN, and the private sector," he said.

Sri Mulyani's deputy also said that efforts to maintain smooth distribution are very important. This strategy will be supported by strengthening in the infrastructure sector.

"Good public policy communication support can further control inflation to achieve the specified targets," he said.

For information, the peak increase in inflation in Indonesia occurred in 2022, which at that time reached 5.5 percent. High levels occur due to rising commodity prices and adjusting fuel prices in the country.

Although relatively high, Indonesia's inflation increase is relatively moderate compared to tier countries or even developed countries that can reach double digits.

To note, the 2023 inflation target is 3 percent plus minus 1 percent. Meanwhile, the latest data states that the inflation rate was recorded at 3.08 percent year on year in July 2023.