Coordinating Minister Airlangga Calls RI Experienced Overcoming Inflation During The Russia-Ukraine Conflict

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia has experience in overcoming inflation amid global uncertainty, namely when the Russia-Ukraine conflict heats up.

"We are experienced in handling inflation during the Ukraine conflict. During the conflict, we see that our overall inflation is still under control," said Airlangga as quoted by ANTARA, Friday, April 19.

Airlangga said the Russian-Ukraine conflict at that time had the highest inflationary effect at 5.95 percent.

However, currently inflation is relatively under control in the range of 2.5 percent plus minus 1 percent.

In current inflation, he agrees, food commodities contribute quite high inflation.

However, he reminded that it was caused by the El Nino phenomenon that occurred in July 2023 and continued in February and March 2024.

Airlangga assessed that the prices of food commodities such as rice and cooking oil have started to flatten. Likewise, the prices of cayenne pepper and red chilies have fallen.

"So, this inflation does not depend on the conflict in the Middle East. This is inflation from domestic factors and the influence of El Nino yesterday," he said.

In handling inflation so far, Airlangga also emphasized that the government has closely cooperated with the Central Inflation Control Team (TPIP) and the Regional Inflation Control Team (TPID) so that inflation remains under control in the range of 2.5 percent plus minus 1 percent.

The central and regional governments also continue to strengthen coordination with Bank Indonesia (BI) in efforts to control inflation amid global pressures.

Efforts to control inflation are also supported by monetary policy, such as pro-stability and pro-growth policies, as well as fiscal policies such as optimizing the APBN and APBD as shock absorbers.

In addition, the government has also implemented an "4K" inflation control strategy, namely price affordability, supply availability, smooth distribution, and effective communication.