Introductory Remarks of President of the Republic of Indonesia at Plenary Cabinet Session on Anticipatory Measures for Global Economic Development, at State Palace, Jakarta, April 5, 2022

Bismillahirrahmanirrahim.

Assalamu’alaikum warahmatullahi wabarakatuh,
Good afternoon, may prosperity be upon us all.

Distinguished Vice President,

Participants of Plenary Cabinet Session this morning.

We are aware that the current situation is not an easy situation. Our fiscal and our monetary sectors are very much influenced by the global economy which is currently in turmoil, especially with regard to rising inflation in almost all countries. We must have this awareness, regarding the impact for communities on the ground.

The United States recorded 7.9 percent inflation, while it usually records inflation lower than 1 percent. The European Union recorded 7.5 percent inflation, while it usually records inflation lower than 1 percent. Turkey recorded 54 percent inflation. We have made our best efforts to prevent the increase [of fuel price], but the situation has forced us to increase the fuel price. Therefore, [price of] Pertamax rose yesterday.

To that end, we must be vigilant, every day and every week, to keep calculating gas prices and, besides energy prices, food prices. The two things are very important for us to monitor, and we must always synchronize our measures to prevent mistakes in making policies.

The people in almost all countries have experienced this situation. Our people are also starting to feel the impact of rising inflation, rising energy prices, and rising food prices. (Prices) of basic commodities have started to rise. We must stay vigilant regarding the availability of food and energy supplies, especially before Eid al-Fitr.

To that end, all participants present here, members of the Cabinet, all Ministers and Heads of Institutions, must make the effective policies. Our responses, our policies, and our statements must reflect the sense of crisis. We must empathize with the people’s burden.

Do not do business as usual so that the people think that we do nothing. There was no statement and communications. The cooking oil price [has been rising] for four months, and there was no explanation why it happened.

Second, regarding Pertamax. The Minister did not give any explanation on this matter. Why did [price of] Pertamax [rise]? You must tell the people and show empathy. There was also no explanation regarding the energy. We must have a high-level sense of crisis.

I demand that all matters related to basic needs must be properly calculated. Not only cooking oil, but also rice, soybeans, and wheat. If we do not pay attention to work details, and we do not deliver any statement, there will be an assumption that we do nothing.

We must formulate effective policies, make immediate responses, show our leadership on the ground, and make empathetic statement to the people.

We must also pay attention to this year’s mudik [annual exodus ahead of Eid al Fitr]. I order Chief of the Indonesian National Police (Polri), supported by the Indonesian National Defense Forces (TNI) and Minister of Transportation, under the coordination of the Coordinating Minister to prepare for the mudik. Do not make mistakes in preparing appropriate mudik routes. We must minimize congestion during the exodus and the reverse exodus periods. We must calculate it carefully. Based on the information I got, everyone wants to do mudik this year. So, we have to make extra preparations.

Regarding social assistance, I hope that the Family Hope Program (PKH) and cooking oil cash assistance to be disbursed as soon as possible before Eid al-Fitr. It will be better if the distribution can be gradually carried out these weeks. The amount of money, Rp 300,000, is really needed by the people, ahead of Eid al-Fitr, to buy cooking oil and other basic needs.

We must also pay attention to cash for work program (Padat Karya). In this tough situation, we need a massive job creation. Do support industries related to food, including animal feed on a small scale, as well as matters related to cold storage, and logistics that can be used to store food for a very long period.

Regarding investment, I remind you that incentives for labor intensive industries must be expanded. Industries related to import substitution or local content must be supported to achieve goals I have previously mentioned.

Do inform the people regarding the very tough global situation. You must deliver it in language easily understood by the people, and disseminate the measures taken by the Government in dealing with the crisis and rising inflation. Avoid making any controversies, and focus on doing your jobs in dealing with the tough situation. Nobody should say anything about the postponement or the extension. No more.

That concludes my statement.
I thank you.

(RI/MMB)