Minister Of Home Affairs Reminds Local Governments To Beware Of Rising Food Prices Trigger Inflation

Minister of Home Affairs (Mendagri) Muhammad Tito Karnavian appealed to local governments (Pemda) throughout Indonesia to actively support micro, small and medium enterprises (MSMEs) in managing halal certification. (ANTARA/HO-Kemendagri)

JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian asked the Regional Government (Pemda) to be aware of rising food prices, especially primary commodities that have the potential to trigger inflation.

The Minister of Home Affairs explained that national inflation in July 2025 year on year (yoy) was recorded at 2.37 percent, with 0.3 percent monthly inflation. This figure is an increase compared to the previous month which was 1.87 percent, but still in the ideal range between 1.5 to 3.5 percent.

"The lowest is 1.5, the highest is 3.5, the ideal. Ideally, it pleases producers, farmers, fishermen, factories, it is also fun for consumers, the general public," Tito said in a statement in Jakarta, Tuesday, quoted by Antara.

The increase in inflation was mainly influenced by food, beverage and tobacco groups that experienced 3.75 percent inflation, with the largest share of 1.08 percent. Some of the commodities that are of concern include rice, shallots, red chilies, and broiler eggs.

"This means that we have to be careful that food and beverages contribute to the increase in inflation [significantly enough], from 1.87 percent to 2.37 percent," he said.

The Minister of Home Affairs added that the Ministry of Home Affairs has a special desk that monitors reports on regional inflation control through the inspectorate route. Several regions have implemented control measures, but some have not taken action.

"If nothing has been done, we will go down there," said the Minister of Home Affairs.

On that occasion, he also highlighted the condition of regional economic growth. According to him, economic growth is the main indicator to assess the progress of an area.

"If there is a minus setback, if he is plus progress," he explained.

He said, North Maluku Province (Malut) recorded the highest economic growth of 32 percent, followed by Central Sulawesi, Riau Islands, and Bali Provinces. On the other hand, Central Papua Province, West Nusa Tenggara (NTB), and West Papua recorded minus economic growth.

At the district level, the highest growth occurred in North Penajam Paser, Bintuni Bay, and South Halmahera. Meanwhile, several regions recorded minus economic growth, such as Bontang City minus 2.51 percent, Pangkal Pinang City minus 2.3 percent, Anambas Islands Regency minus 5.67 percent, and Natuna Regency minus 3.57 percent.

"We have all the complete data and even the minus we know, the regencies, including the cities," said the Minister of Home Affairs.

To increase economic growth, the Ministry of Home Affairs has formulated nine steps that can be adopted by the local government. These measures can also be reported through the control eikonomy.kemendagri.go.id page.