Government, BI introduce steps to maintain low inflation rate
The government and Bank Indonesia (BI) agreed to introduce a number of actions to maintain inflation at 3.5 percent, plus or minus 1 percent, this year at a meeting of the central inflation control team in Jakarta on Tuesday.
“Under the 2019-2022 national inflation control plan, the moves will focus on maintaining supply and smooth distribution supported by a conducive ecosystem and strong data,” according to a statement issued after the meeting.
The second step is to ensure inflation in each province remains under control through coordination between the central and regional governments.
The government will also organize a national coordination meeting on inflation control in July, followed by similar events in each province.
Inflation was recorded at 3.13 percent last year.
Coordinating Economic Minister Darmin Nasution welcomed the agreement, saying that such a mechanism had managed to control inflation in the last four years.
“This achievement is inseparable from the synergy in monetary and fiscal policies to maintain a healthy macroeconomic condition,” he said as quoted by kontan.co.id, adding that the low inflation was also supported by structural policy, including infrastructure development in a number of regions to improve connectivity and distribution. (bbn)
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