Regulation Of Coordinating Minister Airlangga To Regional Government: Inflation Must Be Under 5 Percent Starting Next Month

Coordinating Minister for the Economy Airlangga Hartarto (central) along with several other officials after the National Inflation Meeting in Jakarta (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - Coordinating Minister for the Economy Airlangga Hartarto has firmly asked regional heads to continue to maintain the inflation rate so that it is in accordance with the targets set by the central government.

According to Airlangga, the trend of increasing prices has recently brought inflation levels exceeding the predetermined target, which is 3 percent plus minus 1 percent. For this reason, he set a special target for local governments (Pemda) to be able to reach certain numbers.

"Of course, governors, regents, and mayors whose inflation rates above the national level are requested to reduce inflation in the months ahead below 5 percent," he said when giving a statement to reporters after the National Meeting of Inflation Control, Thursday, September 1.

Airlangga added, to achieve this goal, local governments are allowed to optimize their respective fiscal instruments in supporting the work agenda in the field.

Optimizing transfer funds to regions, including DAK (special allocation funds) with thematic food security. Then, DTU (public transfer funds) consisting of DBH (products sharing funds) and DAU (public allocation funds) of 2 percent to reduce food prices. And it can also provide social assistance and support to the transportation sector," he said.

Furthermore, Airlangga advised that the flexibility in using the budget must still refer to the applicable regulations.

"The use of the unexpected budget for the APBD can be used to control inflation in accordance with the circular issued by the minister of interior," he stressed.

For information, the government continues to intensify inflation control in order to maintain national economic stability. This is evidenced by the formation of the Central Inflation Control Team (TPIP) and the Regional Inflation Control Team (TPID).

The results of the work and strong coordination of TPIP and TPID are reflected in the decline in the inflation rate in August 2022 to 4.69 percent year on year (yoy) from the previous 4.94 percent in July 2022.

Spatially, there are 66 regencies/cities whose inflation rates are above the national level. Meanwhile, for the provincial level, the inflation rate is still recorded above the national book," said Coordinating Minister Airlangga.