Government Sets Inflation Target Of 2.5 Percent

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Aris Nurjani/VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government set an inflation target in the range of 2.5 percent plus minus 1 percent in 2024 from the previous 3 plus minus 1 percent in 2023.

To achieve this, he said, various strategic efforts will be made to consistently maintain monetary and fiscal policies to support inflation control and encourage economic growth.

"Second, controlling volatile food inflation so that it can be controlled below 5 percent, with a focus on rice, chili, onions commodities. Then also maintaining supply availability with food distribution for short-term risk mitigation," he explained to the media crew, Monday, January 29, 2024.

In addition, continued Airlangga, this was also done as a measure to anticipate the shift in the harvest season and maintain price increases ahead of religious holidays.

Airlangga added that the government will also strengthen food security by maintaining productivity stability.

"Then the availability of data is needed and strengthens the strategy between the Regional Inflation Control Team (TPID) and continues the national movement to control food inflais, as well as communication to maintain inflation expectations," he explained.

Airlangga said the government had also decided to continue the food assistance program until June 2024 of 10 kilograms and would provide direct cash assistance for food risk mitigation of IDR 200,000 per month for 18.8 million Beneficiary Families (KPM).

The BLT will be given from January to March 2024 which will be distributed in February for three months at once so that people get a BLT of IDR 600,000.

"This is to replace El Nino's program, which was given at the end of last year of Rp. 200,000 per month. At that time for two months or Rp. 400,000," he said.

Airlangga said that at the High Level Meeting (HLM) he also agreed on an inflation target of up to 2027 of 2.5 percent plus minus 1 percent which would be set in the regulation of the minister of finance.

He hopes that in the future the inflation target can be achieved according to the target in 2024.

"The Central Inflation Control Team (TPIP) will also hold a national coordination meeting in June with the theme of securing production and increasing supply chain efficiency to support price stability," he concluded.