Govt and Central Bank Take Measures to Control Inflation
The Government and the central bank Bank Indonesia (BI) agreed to take three strategic measures to keep the Consumer Price Index (CPI) inflation rate in the range of 3.5% ± 1% in 2019. The decision was taken in a Coordination Meeting of the Central Inflation Control Team (TPIP), which consists of the heads of several Government institution and ministries, in Jakarta, Tuesday (29/1).
The meeting was attended by Coordinating Minister for the Economy Darmin Nasution, Governor of BI Perry Warjio, Minister of Finance Sri Mulyani, Minister of Trade Enggartiasto Lukita, Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas) Bambang Brodjonegoro, Minister of State-Owned Enterprises Rini Soemarno, Director of the National Logistics Agency (Bulog) Budi Waseso, Head of the Central Statistics Agency (BPS) Suhariyanto, and representatives from related ministries/institutions.
The three aforementioned steps are:
- Maintaining inflation within the targeted range by controlling volatile food inflation at a maximum range of 4-5%. This strategy is carried out through four main policies related to Price Affordability, Supply Availability, Distribution, and Effective Communication. Referring to the 2019-2021 National Inflation Control Road-map, this policy is carried out by giving priority to availability of supply and distribution, which is supported by more conducive ecosystem and availability of accurate data.
- Strengthening the implementation of the 2019-2021 National Inflation Control Road-map and implementing the Road-map for Inflation Control at the provincial level; and
- Strengthening the coordination between the Central and regional governments in controlling inflation through the National Coordination Meeting on Inflation Control in July 2019 with the theme of “Synergy and Inflation Control Innovation for Inclusive Economic Strengthening”. The meeting will be followed up by Regional Coordination Meeting of Regional Inflation Control Team (TPID).
The measures are expected to strengthen inflation control. For the record, the 2018 Consumer Price Index (CPI) inflation was controlled at the level of 3.13%, within the target range of 3.5% ± 1%.
On the occasion, Coordinating Minister for the Economy Darmin Nasution praised the agreement and the achievement of the inflation control for four consecutive years.
“This achievement is inseparable from synergy of monetary and fiscal policies in managing healthy macroeconomic conditions and structural policies, including infrastructure development in various regions that improve connectivity and distribution,” Darmin said.
Darmin further said that the Central and regional governments, along with Bank Indonesia, will continue to strengthen policy coordination to achieve lower inflation in the range of 3% ± 1% in 2020 and 2021 so that it can support strong, sustainable, balanced, and inclusive economic growth. (Humas Kemenko Perekonomian/ES)
Translated by: Ridwan Ibadurrohman
Edited by: Yuyu Mulyani