BI Governor: Best Indonesian Inflation Control In The World

BI Governor Perry Warjiyo (Photo: Capture BI Youtube screen)

JAKARTA - Governor of Bank Indonesia (BI) Perry Warjiyo revealed that Indonesia's inflation is one of the lowest in the world. According to him, the level of inflation recorded by the Republic of Indonesia is much more sloping compared to a number of G20 countries.

"Including lower than Argentina, Turkey, even India, the European Union and America," he said at a press conference after the 2023 National Inflation Control Coordination Meeting at the Merdeka Palace, Jakarta, Thursday, August 31.

Perry explained that Indonesia's achievements were achieved thanks to the implementation of the right policy strategy, such as a close synergy between the central government and the regional government and Bank Indonesia.

"In other countries, if there is only one drug inflation, the central bank interest rate will continue to be raised. In Indonesia, there is a very strong synergy," he said.

Especially at BI, Perry explained that the steps taken were quite diverse, ranging from interest rates, exchange rate stability, and monetary management.

"In the government there is also a fiscal policy, including the provision of subsidies. We are also coordinating in the Central/Regional Inflation Control Team (TPIP/TPID) chaired by the Coordinating Minister for the Economy. And every Monday, the Minister of Home Affairs checks (the development of inflation)," he said.

This is a characteristic of Indonesia, and makes Indonesia the best in the world in controlling inflation. Because earlier, there was close coordination between Bank Indonesia's monetary policy, the government's fiscal policy, and there was also the National Movement for Food Inflation Control," he stressed.

On that basis Perry is optimistic that inflation will remain at the target of 3 percent plus minus 1 percent this year and 2.5 percent plus minus 1 percent in 2024. Meanwhile, the inflation rate in July 2023 was recorded at 3.08 percent year on year (yoy).

On the same occasion, Coordinating Minister for the Economy Airlangga Hartarto said that all countries are currently focusing on two things, namely inflation and economic growth.

Indonesia's inflation in July was much better than India which amounted to 7.44 percent, England 6.9 percent, Germany 6.1 percent, Italy 5.9 percent, and the European Union 5.3 percent, "said Airlangga.