Indonesia Expects Higher Inflation Rate Than Economic Growth: Airlangga

TEMPO.CO, jakartaCoordinating Economy Minister Airlangga Hartarto said the government is struggling to meet the goal of suppressing national food inflation. The inflation rate should be below 5 percent by the end of the year.

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

President Joko Jokowi Widodo had also asked him to continue monitoring the rate of inflation in the regions, as he had done earlier in monitoring the COVID-19 pandemic. Airlangga therefore pledged to keep an eye on the fields, especially in the markets.

The country’s economic growth should reach at least 5.2 percent this year. From the second quarter of 2022, economic growth was 5.4 percent.

“So we have to be prepared that our inflation rate will be a bit higher than the economic growth rate,” Airlangga said.

After fuel price spikes, President Jokowi issued five orders to control the rate of inflation to increase food security and support people’s purchasing power for national economic recovery.

First, identify the sources of inflationary pressures in the regions. Second, increasing inter-regional cooperation to reduce supply and price differences between regions. Third, lower transportation costs by taking advantage of the opportunity for interregional trade distribution, including lower airline ticket prices by operating more aircraft.

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


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