Coordinating Minister for Economic Affairs, Airlangga Hartarto, has projected national inflation in the range of 4.0 to 4.8 percent for 2022, or slightly above Bloomberg’s estimate of 4.5 percent. Therefore, he hoped that several programs and extra efforts that are being carried out will continue to be carried out well.
“Some things that need to be maintained and anticipated in controlling inflation include the role played by the government through the state budget to contain fuel prices, which will certainly be a challenge in the second quarter,” Hartarto said during the 2022 national coordination meeting on inflation control on Thursday.
To contain the spike in inflation, the synergy of the Central Inflation Control Team (TPIP) is continuously being pursued, he added.
Several measures, including maintaining price affordability, food and supply availability, smooth distribution, and effective communication, have been intensified, especially to maintain stability and purchasing power.
Meanwhile, from the perspective of the Regional Inflation Control Team (TPID), almost all districts and cities have strengthened their participation in 2022.
“TPID participation has reached 78 percent this year; last year, it was still around 71 percent,” the minister informed.
Hartarto, who is also the chair of TPIP, said that there are also several regions that have excelled in controlling inflation, so it is hoped that additional facilities and incentives from the Minister of Finance can be provided.
The national Consumer Price Index (CPI) inflation in July 2022 was recorded at 4.94 percent on an annual basis (year-on-year/yoy).
He said the factors for the high national inflation in the mid-term this year were global commodity prices, weather, inflationary pressures in several regions, and production disruptions.
Bank Indonesia (BI) Governor Perry Warjiyo had earlier noted that Indonesia’s inflation rate had reached 4.94 percent year-on-year in July 2022, fueled by volatile food prices, which rose 11.47 percent.
Meanwhile, President Joko Widodo had said he believes that sound synergy and cooperation between the regional governments and TPIP and TPIDs would help keep the inflation rate below 3 percent.
“I believe if the cooperation that I have mentioned earlier (runs well) and governors, district heads and mayors, TPIP, and TPIDs all work (together), (then we will be able to) return it to below 3 percent. As a matter of fact, the goods are available,” he affirmed.
To this end, Widodo had instructed Home Affairs Minister Tito Karnavian to issue a regulation allowing regional governments to utilize the unforeseen budget fund in their regional budget (APBD) to offset food transportation costs that posed a problem.
The President also urged Transportation Minister Budi Karya Sumadi to respond to a complaint regarding high inter-regional air cargo fares that also contributed to inflation.
Moreover, he asked State-Owned Enterprises Minister Erick Thohir to increase the number of aircraft to help normalize the prices of air tickets.
He further called on all regional heads to get a grasp on the inflation situation in their respective regions.
The President noted that five provinces recorded high year-on-year inflation in July 2022: Jambi (8.55 percent), West Sumatra (8.01 percent), Bangka Belitung (7.77 percent), Riau (7.04 percent), and Aceh (6.97 percent).
Source: Antara News