5 Bank Indonesia Moves To Keep Inflation In 2021 Under Control At 3 Percent Level

Chicken seller in Flamboyan Pontianak. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) and the government have agreed on five strategic steps to strengthen inflation control in 2021.

Head of the BI Communication Department Erwin Haryono said this strategy was adopted to keep inflation within the target range of 3 percent plus-minus 1 percent this year.

"First, we strive for foodstuff inflation not to exceed 3 percent to 5 percent through affordability price, availability of supply, smooth distribution, and effective communication", he said in a press statement Friday, February 12.

Erwin added, the implementation of the strategy is focused on maintaining continuity of supply at all times and smooth distribution between regions, among others, through the use of information technology and strengthening inter-regional cooperation.

"Second, strengthening the coordination of the central and regional governments. Three, the synergy between ministries/agencies with local government support. And the fourth and fifth are strengthening national food security and maintaining the availability of government rice reserves", he said.

To note, these five strategies are the conclusions of the coordination meeting of the Central Inflation Control Team (TPIP) on 11 February.

The meeting also agreed on an inflation target for the next three years, respectively, 3 percent plus-minus 1 percent (2022 and 2023), and 2.5 percent plus-minus 1 percent (2024).

The coordination meeting of the heads of ministries and institutions that are members of the TPIP is chaired by the Coordinating Minister for Economic Affairs and attended by the Governor of Bank Indonesia, the Minister of Finance, and the Minister of Home Affairs.

Then also mentioned the Minister of Trade, Minister of Public Works and Public Housing (PUPR), Minister of Energy and Mineral Resources (ESDM), Minister of State-Owned Enterprises (BUMN), Head of the Central Statistics Agency (BPS), President Director of BULOG, and relevant representative.

"In the future, the monetary authority together with the government is committed to continuing to strengthen synergies so that inflation can be maintained in the hope that it can further boost people's purchasing power as part of the implementation of the economic recovery program", Erwin concluded.