Inflation Maintained, Price Stability Claimed to Get Better

The inflation movement of only 3.13% is believed to be the success of the government in keeping inflation low amid global economic uncertainty.

This was said by President Ahmad Erani Yustika’s Special Staff that inflation this year was 3.13% lower than last year’s inflation of 3.6%. However, inflation in 2018 is higher than 2016 which was 3.02%.

The government and Bank Indonesia (BI) targets for inflation in 2018 are 3.5% plus minus 1%.

“Previously, the surge in world oil prices in 2018 was predicted to increase inflation, both in volatile goods inflation and core inflation,” he said, quoted from his official statement on Wednesday (2/1/2019).

He explained that the realization of inflation this year was also below the 2015-2019 RPJMN target of 3.5%. Next year, inflation is targeted at the same figure.

In addition, the achievement of 2018 inflation has an important influence on the movement of inflation throughout 2015-2018, which is only 3.32%. This figure is far lower than the average of 5.86% during 2010-2013.

The decline in inflation is also seen in three types of inflation. Over the past four years, core inflation has averaged 3.26% per year; inflation of administered prices and volatile foods inflation of 4.59% and 2.29% per annum respectively.

During 2010-2013, the three types of inflation averaged 4.5%; 6.87%; and 9.66% per year.

According to him, the decline in inflation is inseparable from the results of the hard work of all stakeholders. “The central government has a role in facilitating the flow of goods through infrastructure development to production centers. Monetary authorities work through controlling demand-side inflation, such as managing so that the increase in world commodity prices does not sting domestic prices,” he said.

Meanwhile, the regional government, through the Regional Inflation Control Team (TPID) has an important role in reviewing and formulating policies to control inflation in the regions, especially in the food sector.

In other parts, village government plays an important role in realizing village funds, especially for infrastructure development such as irrigation and roads.

The decline in inflation is the capital for the government to spur future economic growth so that other development targets can be achieved faster.

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