Economic Coordinating Minister: Indonesia’s Inflation Rate Relatively Under Control

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 14 Juni 2024
Category: News
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Coordinating Minister for Economic Affairs Airlangga Hartarto delivers a statement during the Opening of the 2024 National Coordination Meeting on Inflation Control and the Regional Inflation Control Team (TPID) Award at State Palace in Jakarta, Friday (06/14) (PR of Cabinet Secretariat/Rahmat)

Indonesia’s inflation rate was relatively under control compared to the world’s biggest economies.

The statement was made by Coordinating Minister for Economic Affairs Airlangga Hartarto Friday (06/14) during the 2024 National Coordination Meeting on Inflation Control and the Regional Inflation Control Team (TPID) Award at the State Palace in Jakarta.

“The inflation rate on this year’s May was at 2.84 percent year-on-year (yoy) compared to others G20 member countries, namely Russia which was at 7.84 yoy, India at 4.75, Australia at 3.6 percent, and the US at 3.3 percent,” Airlangga added.

The Coordinating Minister said the Government must keep a watchful eye on the trade shift that leads to an increase in trade in ASEAN countries.

“This quarter, ASEAN’s trade recorded a higher figure than the USA and China, Sir. It’s the first in our history. It means that there is a shift in the supply chain. Considering that we do not have a Free Trade Agreement (FTA) yet, the benefits are more received by Vietnam, Thailand, and some countries in ASEAN. Thus, we are preparing a FTA with the USA,” he added.

On that occasion, Airlangga said that the success of inflation control in Indonesia was affected by affordable goods prices, adequate supply, smooth distribution, effective communication, as well as fiscal and monetary policies in the real sector.

The Government, Airlangga continued, has carried out measures to control inflation through the distribution of the Food Supply and Price Stabilization (SPHP) program, food assistance, subsidized fertilizer, and the People’s Business Credit (KUR). Moreover, the Government has also ensured the distribution of ten strategic foods by the National Food Agency and the optimization of the sea toll program for 3T (frontier, outermost, underdeveloped) regions.

At the central level, Airlangga further said that as of May 31, the budget realization at Ministries/Agencies for controlling inflation had reached 29 percent, or Rp39 trillion of Rp124.16 trillion, while at the regional level, it had reached Rp13.56 trillion of Rp92.87 trillion.

In addition to the inflation control, Airlangga also said that the sustainability of domestic supply plays a significant role in maintaining food stability all over Indonesia while underscoring that the development of food balance is vital to monitor food prices in all regions.

“The National Food Agency will prepare the accountable food data. With the optimization of food balance, food price stability can be monitored,” he added.

For the record, the TPID award was handed over to Provinces/Regencies/Cities as follows.

  1. The TPID Award for the Provinces with the Best Performance in 2024: Riau islands province, Central Java province, South Kalimantan province, Southeast Sulawesi province, and West Nusa Tenggara province.
  2. The TPID Award for the Regency/City with the Best Performance in 2024: Pekanbaru city, Madiun city, Banjarmasin city, Bone regency, and Mataram city.
  3. The TPID Award for the Regency/City with the Best Achievement in 2024: Tanah Datar regency, Kebumen regency, Kutai Kartanegara regency, Boalemo regency, West Lombok regency.


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