BI Boss Says Indonesia's Inflation Is The Lowest In The World

Governor of Bank Indonesia Perry Warjiyo. (Photo: Doc. ANTARA)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo said that the trend of inflation in the last 10 years has decreased significantly, as reflected in the condition of inflation in the consumer price index (IHK) in May 2024 which was recorded at 2.84 percent, or maintained in the target range of 2.5 percent plus minus 1 percent.

"Indonesia's inflation trend in the last 10 has decreased and is under control, even among the lowest in the world today," Perry said at the 2024 National Inflation Control Coordination Meeting at the Presidential Palace, Friday, June 14.

Perry said that inflation in most areas is within this target range thanks to the support for the synergy of inflation control by the central and regional governments as well as the consistency of BI policies in coordinating with the Central Inflation Control Team (TPIP) and the Regional Inflation Control Team (TPID), including coordinating in conducting the National Movement for Food Inflation Control (GNPIP).

Perry estimates that future inflation conditions in the remainder of 2024 and 2025 will remain under control in the target of 2.5 percent plus minus 1 percent.

"We express our deepest appreciation to the President for the consistency of leadership and direction of inspiration, innovation, policy breakthroughs and the push for synergy to control inflation," he said.

Perry added that in the future BI will continue to strengthen the policy mix in maintaining stability and supporting sustainable growth, in close synergy with the central and regional governments.

"In global conditions that are still volatile, monetary policy will consistently maintain stability by ensuring inflation is controlled and the exchange rate remains stable," he explained.

On the same occasion, Coordinating Minister for Economic Affairs Airlangga Hartarto said that Indonesia's inflation in May was recorded at 2.84 percent (yoy).

This figure is better than the G20 countries.

"Compared to other countries of the G20 Russia, for example 7.84 percent yoy, India 4.75 percent, Australia 3.6 percent, the United States 3.3 percent. So Indonesia is relatively better than these countries and controlled by inflation supports the performance of economic growth, which is 5.11 percent, so we grow higher quality than various other countries," he concluded.