Government Policy In Holding Inflation Rate, Saves The Economy Of The State And Society

Illustration of policies to contain inflation (Photo: Doc. Antara)

YOGYAKARTA - The global economic situation that is currently difficult makes Indonesia worried about the threat of inflation. The latest data shows that Indonesia's inflation rate in August 2022 was recorded at 4.6 percent on an annual basis. Then what is the government's policy of holding back the inflation rate?

Inflation or an increase in goods prices and what happens continuously has had quite an impact on the state budget and the economy of its people. The Minister of Finance, Sri Mulyani Indrawati, said that the pressure on food prices and energy had a fairly heavy impact on many countries. In addition, the Russian-Ukraine war also affects energy prices.

National economic growth has been hampered due to an increase in the price of goods and services. This problem needs to be controlled by the government through policies to reduce the rate of inflation.

Pemerintah Indonesia menjalankan berbagai upaya guna menekan laju inflasi yang dapat menghambat pertumbuhan ekonomi nasional. Pemerintah melakukan tiga kebijakan untuk mengatasi inflasi.

The government implements monetary policy as a step to overcome the inflation rate that threatens the national economy. monetary policy is a policy in terms of finance, such as reducing and increasing the amount of money circulating in the community.

The purpose of implementing monetary policy is to improve people's welfare and strengthen the monetary stability economy. Another monetary policy step is to control the amount of money circulating in the community or open market operations policies.

Another way that the government implements to reduce inflation is through fiscal policy. Fiscal policy is related to government spending and budget revenue. The Indonesian government has implemented fiscal policies, such as making loans, increasing tax rates, reducing government spending, and other measures.

Inflation causes an increase in the price of goods which can be out of control. The policy of determining the maximum price is one of the government's steps in suppressing inflation. The maximum price is set on goods and services to increase again so that people's purchasing power.

Meningkatkan hasil produksi juga menjadi cara yang dilakukan pemerintah untuk menahan inflasi. Pemerintah menerbitkan kebijakan yang membantu pengusaha. Kebijakan tersebut dimaksudkan untuk mendorong pengusaha menambah tingkat produksinya. Ketika barang yang berdaran bertambah banyak, maka perputaran uang juga berubah semakin cepat. Kondisi ini bisa membuat pendaran uang bersama kembali.

The government has also tightened supervision over the distribution of goods to curb the inflation rate. This supervision is carried out to maintain the balance of money circulation with goods and services in the community. The delay in the distribution of goods can lead to an increase in the price of goods in an area. In addition, high demand but low production also causes the rate of inflation to increase.

Another way that the government does in controlling the inflation rate is by keeping people's incomes stable. Public income is closely related to the condition of money circulation with goods and services in the community.

To control the inflation rate, one way that the government does is to keep people's incomes stable. This is because people's income is closely related to the balance between the money circulating and goods and services.

While in an inflational condition, the circulation of goods and services cannot meet the demand that arises. The reason could be because the production results are lacking, or because the demand cannot be met by local producers.

To overcome the inequality in circulation, the government then issued a policy to facilitate imported goods entering Indonesia. In this way, domestic needs can be met.

Those are some of the government's policies in holding back the inflation rate in Indonesia. Inflation greatly affects the economy of the state and society, so it is necessary to take wise and measurable steps in dealing with it.

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