JAKARTA - President Joko Widodo (Jokowi) believes that no other country has carried out such detailed work in Indonesia's efforts to control inflation.
According to Jokowi, while giving directions at Investor Daily Summit 2022 in Jakarta, generally in efforts to control inflation countries only act through central banks that raise interest rates.
"But we are not only in the matter of raising interest rates which are under the authority of Bank Indonesia, but in real practice we also go directly to the source, which is what? The increase in goods and services," he said in Jakarta as reported by Antara, Tuesday, October 11.
President Jokowi explained that at least twice he had gathered all regional heads for briefing regarding inflation control and would continue to be carried out periodically accompanied by evaluations every two weeks.
Along with the briefing, President Jokowi admitted that he had given the regional authority to use the General Transfer Fund (DTU) by two percent and also the unexpected budget post in their respective APBD postures in efforts to control inflation.
"For example, there is an increase in shallots in a province, namely Lampung, where is the source of the shallot, Brebes. Because the price of shallots goes up in Lampung, local governments can directly buy it to Brebes or cover transportation costs charged to the APBD," said President Jokowi.
According to him, after being calculated, the costs that must be incurred to cover the cost of transporting food commodities are relatively cheap.
President Jokowi gave another example, for example, there is an increase in the price of chicken eggs in Jabodetabek which encourages an increase in inflation, it can also be overcome by connecting these needs to commodity producing areas, such as Blitar.
"The cost of transportation from Blitar to Jabodetabek has been closed by the local government. So the price is the price of farmers, the price of farmers," he said.
"Look for a country that works like us in such detail, nothing. The control is definitely macro by the central bank," said President Jokowi.
This detailed work, which Jokowi claims is enough to help control inflation which is lower than expected, will reach 6.8 percent following the adjustment to the price of fuel oil (BBM).
"Yesterday it was calculated at 6.8 percent, the fall was at 5.9 percent because the local governments had started to move there. I checked, checked, checked, inspection, sampling has moved," he said.
The President also reminded that Indonesia is relatively good in terms of controlling inflation compared to other countries such as Argentina, which has reached 83.5 percent.
According to Jokowi, this was also quite helped by the performance of Bank Indonesia as the central bank with the Ministry of Finance working hand in hand, full of communication, and minimal overlap.
"What I see in everyday life between our central bank, BI, and the Ministry of Finance goes hand in hand, goes hand in hand, does not overlap. This is what I see, the communication is good, so that fiscal and monetary can run together," he said.
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