Jokowi Orders Maintain Inflation To Boost People's Purchasing Power

Jokowi Orders Maintain Inflation to Boost People's Purchasing Power

Jokowi

Jakarta - President Joko Widodo (Jokowi) gave directions to the central and regional governments to maintain the balance of inflation . The goal is to boost the purchasing power of the people that has weakened due to the Covid-19 pandemic.

The directive was given in a video remarks at the opening of the 2020 National Coordination Meeting for Inflation Control, Thursday (22/10/2020).

"The economy in 2020 is very different from previous years. We must keep inflation at a balance point in order to provide stimulus to producers to keep production," he said.

According to him, maintaining current supply and demand is very important, so that when the economy recovers and people's purchasing power returns to normal, there will be no significant pressure on the price of goods.

"Therefore, controlling inflation does not only focus on efforts to control prices, it is also hoped that people's purchasing power is maintained, and producers, especially food MSMEs, can also move," said Jokowi.

To maintain purchasing power, he continued, the government has distributed social protection programs and cash transfers. Such as the Family Hope Program (PKH), social assistance (cash assistance), direct cash assistance (BLT) for village funds, the Pre-employment Card program, salary subsidies, and productive social assistance for MSME assistance.

"It is hoped that it can increase household consumption, raise demand again, and encourage supply growth," Jokowi continued.

Jokowi hopes that what the central government has done can be strengthened again in regional agencies. This is done by accelerating the realization of the APBD, particularly social expenditure assistance and capital expenditures that support economic recovery, particularly the MSME sector.

"I have asked ministries / agencies and regional government spending to prioritize the absorption of domestic products, both agricultural products and MSME products," Jokowi added.

Bank Indonesia (BI) reports that inflation for the third week of October 2020 is estimated at 0.04 percent (mtm). So that inflation in October 2020 on a calendar year is 0.93 percent (ytd), and on an annual basis it is 1.41 percent (yoy).

"Based on the Price Monitoring Survey in the third week of October 2020, the price development in October 2020 is estimated to have inflation of 0.04 percent (mtm)," said Head of the Communication Department of Bank Indonesia, Onny Widjanarko in Jakarta, Friday (16/10).

The main contributor to inflation in the reporting period came from the commodity red chili by 0.08 percent (mtm), and shallots by 0.02 percent (mtm). Then cooking oil and chicken meat each by 0.01 percent (mtm).

Meanwhile, commodities that contributed to deflation during the reporting period were eggs of broilers at -0.05 percent (mtm). Then rice and gold jewelry each amounted to -0.01 percent (mtm).

Onny said that Bank Indonesia will continue to strengthen coordination with the Government and related authorities to closely monitor the dynamics of the spread of Covid-19 and its impact on the Indonesian economy from time to time.

The same goes for further policy coordination steps that need to be taken to maintain macroeconomic and financial system stability. This includes sustaining good and resilient economic growth in Indonesia.

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