To Achieve Controlled Inflation in Indonesia, Coordinating Minister Airlangga Reveals 4K Policy Strategy for Food Sector

COORDINATING MINISTRY OF ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

PRESS CONFERENCE
HM.4.6/366/SET.M.EKON.3/06/2024

To Achieve Controlled Inflation in Indonesia, Coordinating Minister Airlangga Reveals 4K Policy Strategy for Food Sector

Jakarta, June 14, 2024

Indonesia's inflation is currently still under control, where actual inflation in May 2024 was recorded at 2.84% (y-o-y), maintained within the target range of 2.5±1%. This result is better than a number of other G20 countries such as Argentina (289% y-o-y), Turkey (75.45% y-o-y) and Russia (7.84% y-o-y). year-on-year).

This achievement is also inseparable from the results of consistent monetary policy and close inflation control synergy between Bank Indonesia and the government in the Central Inflation Control Team (TPIP) and the Regional Inflation Control Team (TPID) through the strengthening of the National Food Inflation Control Movement (GNPIP). ) in various regions.

At the 2024 National Coordination Meeting for Inflation Control with the theme “Securing Production and Increasing Supply Chain Efficiency to Support Price Stability” at the State Palace, Friday 06/14 , President Joko Widodo tasked the TPIP and TPID to continue strengthening inflation control. by securing production and increasing the efficiency of the food supply chain supported by the GNPIP.

President Joko Widodo has given 5 (five) directions regarding strategies to increase production and efficiency in the food supply chain. First, strengthen food production by optimizing the use of hydraulic infrastructure to anticipate the impacts of climate change. Second, accelerate the application of research-based technologies to support the digitalization of agriculture (smart agriculture). Third, encourage investments to increase the added value of agricultural products. Fourth, upgrade integrated logistics systems and infrastructure to support smooth distribution and supply chain efficiency across regions. Fifth, strengthen synergy and coordination among institutions, at the central and regional levels, to support inflation control efforts.

President Joko Widodo's directive was conveyed to ensure controlled inflation to build a solid foundation to achieve the 2025-2027 inflation target, respectively at 2.5 ± 1%, amid the risk of impact global economic uncertainty and structural challenges that are still emerging.

“In line with the policy strategy of affordable prices, availability of supplies, smooth distribution and effective communication. “It is mainly a mix of fiscal, monetary and real sector policies, so that inflation is maintained “, declared on this occasion the Coordinating Minister of Economic Affairs, Airlangga Hartarto, as president of the TPIP.

Coordinating Minister Airlangga said the 4K policy strategy (affordable prices, availability of supply, smooth distribution and effective communication) was implemented through several things. First, price stabilization aimed at overcoming short-term price increases through the distribution of SPHP, food aid and cheap food movements in all regions, has successfully prevented the rise in food prices. Second, efforts to increase domestic production include pumping programs, increased subsidized fertilizer allocations, and access to financing for the agricultural sector.

Third, ensuring the smooth distribution of food throughout Indonesia, including through a food distribution facilitation program for 10 strategic food items by the National Food Agency and optimizing the use of maritime highways, particularly for underdeveloped, isolated, outermost and border areas (3TP). . At the same time, from a central budgetary perspective, support and synergy between ministries/institutions must also be optimized.

Furthermore, Coordinating Minister Airlangga revealed several elements that have been emphasized in controlling inflation and which must be continued, namely the continuity of domestic supply which is the main key to maintaining price stability in all regions as well as to provide reliable dietary data. Currently, accurate and real-time pricing data is available. However, data on food supply is still being developed.

“The evolution of the dietary balance is important. The food agency will prepare for the second thing, which is the provision of responsible food data. “With a balanced diet, price stabilization in the regions can be better monitored,” said Coordinating Minister Airlangga.

After that, as a recognition to TPID for controlling inflation in the regions, on this occasion, the winners of the TPID 2024 awards were announced. The awards included three categories, namely Best TPID Performance for Provinces and Regions/Cities and Outstanding TPID. for Regency/City.

The winners of the TPID Award 2024 are:

a) Sumatra Region => Province: Riau Islands, Best District/City: Pekanbaru Town, Outstanding District/City: Tanah Datar Regency.
b) Java-Bali Region => Province: Central Java, Best District/City: Madiun City, Outstanding District/City: Kebumen Regency.
c) Kalimantan Region => Province: South Kalimantan, Best District/City: Banjarmasin City, Outstanding District/City: Kutai Kartanegara Regency.
d) Sulawesi Region => Province: Southeast Sulawesi, Best District/City: Bone Regency, Outstanding District/City: Boalemo Regency.
e) Nusa Tenggara, Maluku and Papua Regions => Province: West Nusa Tenggara, Best Regency/City: Mataram City, Outstanding Regency/City: West Lombok Regency.

Also present at the national coordination meeting were the Governor of Bank Indonesia, Minister of Interior, Deputy Minister of Finance, a number of Indonesian Advanced Cabinet ministers, heads of state institutions , all provincial/regency/city TPIDs, as well as related associations. (dep1/dlt/fsr)

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Spokesperson for the Coordinating Ministry of Economic Affairs
Chief, Office of Communications, Information Services and Courts
Coordinating Ministry of Economic Affairs
Haryo Limanseto

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