President Jokowi Tells People to Boost Optimism in Controlling Inflation

President Jokowi opens Investor Daily Summit 2022, at JCC on Tuesday (10/11) (Photo: PR Office of Cabinet Secretariat / Jay)

President Joko “Jokowi” Widodo has called on the nation to boost their optimism in the face of global uncertainties.

According to the President, the current uncertain situation has forced countries to well handle its monetary and fiscal management.

The President made the statement during the opening of the 2022 Investor Daily Summit at Jakarta Convention Center (JCC), Tuesday (10/11),

“I’ve already reiterated many times. The price that must be paid for a war is very expensive. However, in spite of the uncertainties, we have to be optimistic, but also cautious. Still, Indonesia’s economic growth in the second quarter is regarded among the best in the world at 5.44 percent,” President Jokowi said.

The President went on to say that inflation and monetary condition in Indonesia is still under control at the moment thanks to the support from the monetary and fiscal authorities, central bank Bank Indonesia, and Ministry of Finance that are working hand-in-hand without overlapping.

“We should be thankful for this because compared to other countries, such as Argentine which is currently recording inflation at 83.5 percent with the interest rate increase of 3,700 basis point, our inflation rate is at 5.9 percent with interest rate of 75 basis point. It means that our monetary position is still under control,” the President added.

The Government, the President added, has also adopted policies to maintain people’s purchasing power as well as inflation control, including distribution of social assistance that consists of compensations and subsidies amounting to Rp502 trillion.

“The Government also provides a huge amount of social assistance that comprise of compensations and subsidies amounting to Rp502 trillion. It is a really huge amount. We want to maintain people’s consumption, people’s purchasing power, and the cost is Rp502 trillion,” he explained.

The Government has also implemented a macro and micro inflation control, the President said.

According to the President, inflation control is not only taken by increasing Bank Indonesia’s interest rate, but also by allowing regional leaders to use two percent of General Transfer Fund and to make unplanned expenditure to control inflation, such as by providing transportation subsidy.

“How do we do it? For instance, the price of onions in Lampung province is rising. So, the regional government can buy it in Brebes regency or cover the transportation cost from Brebes regency to Lampung province by using the regional budget. We have calculated it and it is affordable,” he said.

For the record, the 2022 Investor Daily Summit adopts the theme of ‘Optimism in Uncertainty’ that focused on digital, resources, and services issues. (FID/UN) (AW/HD/EP)