Ministry Of Finance Reveals Maintaining People's Purchasing Power Through The State Budget

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu. (Photo: Doc. Antara)

Head of the Fiscal Policy Agency, Ministry of Finance, Febrio Kacaribu conveyed that the Government through the State Revenue and Expenditure Budget (APBN) is committed to maintaining conducive conditions, protecting people's purchasing power, and maintaining inflation levels.

Meanwhile, the December 2024 inflation was recorded to be under control in the Government's target range, namely 1.57 percent (yoy). Meanwhile, inflation throughout 2024 decreased significantly from 2.61 percent at the end of 2023, mainly driven by food prices returning to normal levels.

In line with strong purchasing power, Febrio explained that core inflation shows a strengthening trend throughout 2024, reaching 2.26 percent (yoy).

"The strengthening of core inflation is supported by the positive trend of the group providing food and beverages, clothing and footwear, and personal care, especially increasing the price of gold," he said in his statement, Sunday, January 5.

By excluding the price of gold jewelery, Febrio explained that core inflation is also still at the level of 1.72 percent (yoy) moving stable compared to 2023 at the level of 1.72 percent (yoy). Throughout 2024, core inflation without gold has shown a strong trend since July 2024 at the level of 1.58 percent (yoy).

Meanwhile, volatile food price inflation rose to 0.12 percent (yoy) from November 2024, contracting at the level of 0.32 percent yoy) and much lower than the figure in December 2023, which was 6.73 percent.

Febrio explained that the control of food prices is supported by abundant stocks, conducive weather, and the synergy of food inflation control policies.

Meanwhile, inflation is regulated by the Government or administratively-tered prices, down to 0.56 percent (yoy), from November 0.82 percent (yoy), and lower than the 2023 figure of 1.72 percent (yoy).

Febrio said that the control of inflation is regulated by the Government, supported by a fairly stable rate of energy prices and a reduction in air transportation rates during the Christmas and New Year holidays which contribute to monthly transportation deflations.

"The control of inflation throughout 2024 cannot be separated from the commitment and support of policies to control central and regional inflation that are anticipatory and responsive, especially in supporting the control of food prices during the HBKN period," he said.

According to Febrio, the strengthening of core inflation is supported by various fiscal incentive policies and purchasing power strengthening. Energy and transportation policies continue to be managed so that the risk of administrative prices remains under control.