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JAKARTA - The National Research and Innovation Agency (BRIN) stated that the current inflation rate has exceeded the limits set by the government.

This refers to the inflation target in the 2022 State Budget Law which ranges from 3 percent plus minus 1 percent. Meanwhile, the last book in August 2022 was 4.69 percent year on year (yoy).

"The current overheating is a series of pandemic recovery and demand discretion, especially for raw materials (cumulative inflation shocks)," said Macro Planning Coordinator and BRIN Statistics Analysis Panky Tri Febiyansah on Wednesday, September 14.

Although inflation tends to be in a high trend, Panky thinks this will encourage an increase in Indonesia's economic size in the future.

"Our economy will increase in the future and this is actually a provision," he said.

Panky explained that the inflation that is happening now is short-term or temporary. According to him, the government's move to adjust the price of fuel oil (BBM) some time ago will also increase inflation.

Currently, the choice of reducing fuel subsidies is still better than increasing state revenues because it takes time. In fact, it hurts now," he said.

Panky added that there are other options, namely restrictions that can lead to the scarcity of subsidized fuel but have larger excesses.

Or want another option when they are still forced (not to increase the price of fuel) but to make stock scarce. In fact, the social cost is even higher," he asserted.


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