Government, BI agree on five inflation-control strategies for 2021

Jakarta (ANTARA) – The government and Bank Indonesia (BI) have agreed to apply five strategies to control inflation in 2021, according to Coordinating Economic Affairs Minister Airlangga Hartarto.

“Low and stable inflation is expected to support economic recovery and strong and sustainable economic growth in pursuit of Onward Indonesia,” the minister noted in a written statement released on Friday.

The five strategies that aim to maintain the 2021 inflation rate at three percent, give or take one percent, firstly focus on keeping the volatile food inflation in the range of three to five percent.

To this end, the government will strengthen the four pillars of the strategy that comprise supplying goods at affordable prices, maintaining sufficient stocks, ensuring smooth distribution of goods, and holding effective communication during the COVID-19 pandemic.

Maintaining sufficient stocks and ensuring smooth distribution is deemed crucial, especially as a precautionary measure to handle a spike in demand ahead of the Ramadhan fasting month and Eid-al-Fitr festivities in April and May 2021 and other national religious holidays.

Implementation of the strategy will focus on ensuring the continuity of supplies at all times and the smooth distribution of goods from one region to another through the use of information technology and strong inter-regional cooperation, he noted.

The second strategy aims to strengthen coordination between the central and regional governments in controlling inflation through the national coordination meeting of the inflation control team, he remarked.

The third strategy pertains to bolstering synergy among ministries and institutions with the support of regional governments to ensure the success of the central inflation controlling team’s program in 2021, he stated.

The fourth strategy is strengthening national food resilience by increasing production through the food estate program, ensuring the smooth distribution of goods through the optimum use of infrastructure, and handling the impact of natural disasters, he revealed.

The fifth strategy focuses on maintaining the government’s rice reserves and supporting restriction on public activities during the pandemic, he stated.

Hartarto noted that synergistic efforts of the government and central bank in implementing policies through various innovation programs, directed at maintaining stable stocks and smooth distribution during the pandemic, were able to keep the consumer price index (IHK) inflation in check.

In 2020, the IHK inflation was recorded at 1.68 percent year-on-year, well below the target range of three percent, give or take one percent, due to low domestic demand as a result of the pandemic, he remarked.

 

 

 

Source: Antara News

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