President Jokowi Calls for Balance in Managing Deflation, Inflation to Support Economic Stability

President Jokowi delivers a statement to the press after attending the Nusantara TNI Fun Run 2024 at Nusantara, Saturday (10/06). (Photo by: BPMI/Vico)

Understanding the causes of deflation is important to ensure that the economy remains under control and stable, President Joko “Jokowi” Widodo has said.

“First, do check whether deflation is due to falling prices of goods given the fact that the supply is good, distribution is smooth, no transport obstacles, or if there is indeed a decrease in purchasing power?” said the President during the Nusantara TNI Fun Run 2024 held in Nusantara, Sunday (10/06).

President Jokowi stressed that both deflation and inflation must be well-managed to maintain price stability that does not harm various parties, from producers to consumers. According to him, the balance between stable prices and the ability of producers to continue producing goods is very important.

“Both deflation and inflation must be controlled so that prices are stable, not harming producers—whether farmers, fishermen, MSMEs, or manufacturers—and consumers so that prices do not rise,” the President added.

In the current situation, he revealed that the annual inflation rate remains at a relatively good level, around 1.8 percent. However, he warned that this figure should not be too low as it could disadvantage producers, particularly farmers and other production-related sectors.

“Control and balance are necessary. Currently, if the latest year-on-year inflation is about 1.8 percent, it’s still considered good, but it shouldn’t be too low to avoid harming producers, especially farmers who are producing,” the President said, adding that maintaining this balance is not easy. Nevertheless, the Government will continue to strive to ensure sustainable price stability to protect both producers and consumers across all economic sectors.

“Maintaining that balance is not easy. The Government will do its utmost,” the President remarked. (BPMI/ABD) (EST/MUR)