Indonesia Braces for Higher Inflation Rate than Economic Growth: Airlangga

TEMPO.COJakarta – Coordinating Minister for Economic Affairs Airlangga Hartarto said the government is striving to meet the target of suppressing the national food inflation. The inflation rate was expected to be below 5 percent by the end of the year.

“We are really facing the food inflation for the remaining four months,” said Airlangga at the 2022 Central and Regional Coordination Meeting for Inflation Control as quoted from the Bank Indonesia Youtube video on Wednesday, September 14, 2022.

President Joko Jokowi Widodo had also asked him to keep monitoring the inflation rate in regions as he used to monitor the COVID-19 pandemic. Airlangga thus pledged to keep his eyes on the fields, especially in the markets.

The country’s economic growth was targeted to reach at least 5.2 percent this year. As of the second quarter of 2022, the economic growth was recorded at 5.4 percent.

“So we must be prepared that our inflation rate will be slightly higher than the economic growth rate,” said Airlangga.

Following the hike in fuel prices, President Jokowi has issued five orders to control the inflation rate in a bid to tighten food security and support people’s purchasing power for the national economic recovery.

First, identify sources of inflationary pressure in regions. Second, expand inter-regional cooperation to reduce supply and price gaps between regions. Third, lower transportation costs by using the facility of inter-regional trade distribution, including lower the price of air tickets by operating more planes.

Fourth, optimize the use of unexpected spending budgets to support efforts of regional inflation control. Lastly, Jokowi instructed regional governments to expedite the budget absorption to support regional economic growth.


Source: https://en.tempo.co/read/1634311/indonesia-braces-for-higher-inflation-rate-than-economic-growth-airlangga