Global Inflation Pressure Not Over, The Government Chooses Notimor Food Supply

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) pays special attention to controlling inflation in the country in line with the increasing global trend.

Minister of Finance (Menkeu) Sri Mulyani said that the pressure of world inflation is believed to still have an impact on the Indonesian economy, either directly or indirectly. For this reason, she said that she would try to keep inflation from aspects that could be directly controlled by the government.

"We are very focused on being able to control inflation, especially those from factors that are controllable by ourselves, such as food prices that are not imported or goods that we can keep in terms of supply," he said when giving an explanation earlier this week.

The Minister of Finance acknowledged that Indonesia's inflation movement showed a graph uphill since the beginning of the year. However, he assessed that the records recorded by Indonesia tend to be moderate and not as aggressive as several other countries.

"At the level of Indonesia, our inflation is relatively low compared to emerging countries and the G20 countries," he said.

For information, data from the Central Statistics Agency (BPS) shows that until August 2022 the inflation rate based on the consumer price index (IHK) is 4.7 percent year on year (yoy). The book is based on the calculation of price inflation regulated by the government (administed price) of 6.8 percent.

Then, inflation in food prices which fell to 8.9 percent from July 2022 was 11.5 percent and the core inflation rate was 3.0 percent.

Meanwhile, the ideal inflation (IHK) level targeted by the government in the 2022 State Budget Law is 3 percent plus minus 1 percent. This figure is then difficult to control due to the increase in world commodity prices, especially energy and food supply factors.

"Inflationary pressures that come from global will still exist, but we will continue to maintain them," closed the Minister of Finance Sri Mulyani.