Deputy Chairman Of Commission XI: Inflation Problems Only Supply Chains, All Goods Are In Us

Deputy Chairman of Commission XI DPR Amir Uskara (Photo: Capture BI Youtube screen)

JAKARTA - Deputy Chairman of Commission XI DPR Amir Uskara revealed that his party is optimistic that the inflation rate in Indonesia will continue to slope towards the target of around 3 percent this year.

According to him, the inflation control efforts carried out by the government and Bank Indonesia (BI) are quite good, one of which is through the establishment of a Central and Regional Inflation Control Team (TPIP/TPID).

Amir explained that the main trigger for the increase in national inflation is often dominated by foodstuffs. Therefore, he believes that problems can be overcome because a number of commodities are available domestically and not imported goods imported from abroad.

"Our inflation is usually due to chilies, fish, onions. It's all in us, just because the distribution chain is hampered, it causes an increase in inflation," he said through a virtual channel in the Kick Off of the 2023 National Food Inflation Control Movement (GNPIP) in Makassar, Sunday, March 5.

Amir added that the government and BI as well as other related parties must be able to build synergies in controlling inflation. One thing that is quite helpful is providing transportation/logistic incentives to business actors.

"This is the problem in distribution. As long as the distribution can be done well, of course, food inflation can be maintained," he said.

Furthermore, Amir said that the controlled inflation rate contributed to the achievement of growth. The reason is, the sloping inflation level makes BI not need to raise the benchmark interest rate so that the space for economic actors is greater to expand its business.

"Hopefully the growth we build can be more positive in value. It's also a shame if our economic growth is high but our inflation is high. This is certainly less beneficial for the community because there is pressure on purchasing power," he said.

To note, Bank Indonesia is quite concerned about the inflation movement, especially core inflation, because it is one of the bases in setting the benchmark interest rate.

Meanwhile, as of February 2023, core inflation was recorded at the level of 0.13 percent month to month (mtm) or lower than January which was 0.33 percent.

Meanwhile, inflation also decreased from 0.28 percent compared to 1.40 percent contributed by broiler meat, broiler eggs, and cayenne pepper commodities.

Then administered prices inflation recorded inflation of 0.14 percent increased from the previous month's realization which experienced deflation of 0.55 percent influenced by an increase in cigarette excise.

In general, inflation in the consumer price index (IHK) in February 2023 is 5.47 percent year on year (yoy). For information, the government and BI are targeting IHK inflation to fall to 3 percent plus minus 1 percent yoy in the second semester of 2023.