Inflation Is Controlled , Sri Mulyani Provides IDR 1 Trillion Incentives for Outstanding Local Governments

Illustration (Photo: Doc. Antara)

JAKARTA – The Ministry of Finance stated that volatility and high commodity prices have caused global inflationary pressure to remain relatively high. This has pushed up interest rates in many countries and has the potential to increase the cost of funds and tighter global liquidity.

The Minister of Finance (Menkeu) Sri Mulyani revealed that the Revenue and Expenditure Budget (APBN) continues to be optimized as a shock absorber to reduce the negative impacts that have arisen. According to him, central and regional government policy synergy is needed to optimize the role of the state budget.

"Indonesia also has a relatively good, stable and performing economy. When the world is experiencing extraordinary shocks, both in terms of inflation, growth and then being hit with high interest rates, we can still maintain stability," she said on Monday, July 31.

Minister of Finance explained, one way to control inflation by the government is to provide incentives to regions that have managed to keep on target.

"Indonesia is a big country and we can control inflation without relying on interest rates rising too extreme," she said.

Minister of Finance detailed, the fiscal incentives disbursed for controlling inflation in 2023 amounted to IDR 1 trillion. Meanwhile, the provisions are contained in PMK 67 of 2023 concerning Fiscal Incentives for Current Year Performance Awards in the 2023 Fiscal Year. Note that this allocation cannot be used to fund salaries, additional income, and honorarium and official travel

"We must keep this inflation under control, because low inflation is very valuable for the community. It greatly affects their welfare, affects their achievement for various indicators of welfare development, such as the quality of our human resources and also in terms of increasing economic certainty," he stressed.

For information, the national inflation rate in June was maintained at 3.52 percent or sloping from the previous month's 4.00 percent.