Bank Indonesia Opens Secrets, These Are Three 'Manjur Medicines' To Control Inflation

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JAKARTA Bank Indonesia (BI) admits that the national inflation control which is declared down faster than the initial estimate cannot be separated from a number of important policies that have been taken.

BI Governor Perry Warjiyo revealed that the three strategic steps taken by the central bank were positive results.

"Inflation is down faster than we expected. That, the increase in interest rates (previously benchmarks), exchange rate stability, and the National Movement for Food Inflation Control (GNPIP) is really an effective drug to control inflation," he said in Jakarta when answering reporters' questions, Thursday, June 22.

According to Perry, this indication can be seen from the increase in interest rates that were stopped by BI in January 2023 to 5.75 percent.

Then the stability of the rupiah exchange rate is maintained with a point-to-point rupiah record, both compared to the end of May 2023 and the end of 2022, strengthening by 0.30 percent and 4.17 percent, respectively.

"The Rupiah exchange rate is under control in line with the stabilization policy taken by Bank Indonesia," he said.

Then, GNPIP managed to reduce volatile food inflation by 3.28 percent yoy in May 2023 from the previous 11.47 percent in July 2022.

For information, general inflation or based on the Consumer Price Index (JCI) is known to be 4.00 percent yoy in May 2023. This level is already included in the maximum BI target and the government is 3 percent plus minus 1 percent.

Previously, IHK inflation was above the target due to commodity price fluctuations and rising fuel prices last year.