JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto said that the government and Bank Indonesia (BI) agreed on five strategic steps to strengthen inflation control within the target range of 3 percent plus minus 1 percent.
According to Airlangga, this effort is intended as an effort to anticipate the movement of rising commodity prices.
The five steps are strengthening policy coordination to maintain macroeconomic stability, mitigating the impact of normalization of global liquidity policy, and maintaining volatile food inflation at the level of 3-5 percent through the availability of supply and smooth distribution.
Then, strengthen the synergy of policy communication to support the management of public inflation expectations, and finally strengthen the coordination between the central and regional governments.
"Compared to several other countries that experienced an increase in inflation, Indonesia's current inflation achievement is quite controlled and we should be grateful considering the high pressure on both supply and demand sides due to the pandemic," he said in an official statement, Wednesday, March 9.
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Airlangga added that the synergy of the policies adopted was expected to further encourage an increase in people's purchasing power as part of the implementation of the national economic recovery program in the midst of increasing global risks.
He further explained that low and stable inflation is expected to accelerate the economy as well as strong and sustainable growth towards Advanced Indonesia.
"The government and Bank Indonesia will continue to coordinate to mitigate various challenges to achieving inflation in 2022, both from global and domestic sources," he said.
"Strengthening work programs and inflation control policy strategies at the central - regional level, as well as policy communication synergies, are strategic in supporting the achievement of controlled national inflation amid the risks faced," concluded Coordinating Minister Airlangga.
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