Indonesia Urges Regional Action as Inflation Exceeds Target in Some Areas
Jakarta,Indonesia – Indonesia’s Home Affairs Minister Tito Karnavian has directed regional governments experiencing inflation above 3.5 percent too immediately address rising prices, following a coordination meeting held in jakarta on Tuesday. The government is aiming to maintain national inflation within a target range of 2.5 percent, plus or minus 1 percent – equating to 1.5 to 3.5 percent.
While national inflation remains under control, with Statistics Indonesia (BPS) reporting a year-on-year rate of 2.31 percent in August adn a month-on-month deflation of 0.08 percent compared to July, Karnavian stressed the importance of localized responses.
“Consumers are happy with affordable prices, producers are happy, and farmers and fishermen are happy as prices can cover their operational costs,” Karnavian stated, explaining the rationale behind the 1.5-3.5 percent target.
Regions exceeding the 3.5 percent threshold have been instructed to convene meetings to pinpoint the root causes of the price increases.”Is there a shortage of supply? Or is it a distribution issue? Those are the onyl two possibilities,” Karnavian said.
The government intends to intervene through the National Food Agency (Bapanas) and the State Logistics Agency (Bulog), focusing on commodities driving inflation, particularly rice and shallots. Bulog is currently implementing the Food Supply and Price Stabilization (SPHP) program to help stabilize rice prices.
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(Translator: Arie Novarina; editor: Anton Santoso; Copyright © ANTARA 2025)
