Politics
Jokowi stresses importance of controlling deflation and inflation
President Joko Widodo (Jokowi) said that both deflation and inflation should be controlled so that they do not harm all parties.
Whatever we call deflation or inflation, both must be controlled. “So the prices are stable, it does not harm the producers, it can be the farmers, it can be the fishermen, it can be the MSMEs, it can be the manufacturers, but also on the consumer side so that the prices are n “are not increasing,” Jokowi said after the opening of the Nusantara TNI Fun Run in IKN, East Kalimantan, Sunday (10/16/2024), which was reported Between.
This was conveyed by Jokowi in response to the deflation that has occurred for five consecutive months, as reported by the Central Bureau of Statistics (BPS).
The head of state called for a more in-depth study of the cause of deflation, whether it was due to a fall in the prices of goods or whether the purchasing power of citizens was decreasing.
Try to check carefully, deflation is due to a fall in the prices of goods, because the supply is good, because the distribution is good, because there are no obstacles to transport or because there is a reduction in purchasing power. “Control is what is needed, balance is what is needed,” Jokowi said.
In addition, the President also mentioned the annual record inflation (year after year/yoy) in September 2024, or 1.84 percent, which is considered good.
Currently, inflation is the last year after year It's about 1.8, which is good, but don't let it be too low so that producers don't suffer a loss, so that farmers who produce don't suffer a loss. “Maintaining this balance is not easy and we will continue to try,” he said.
Previously, Sri Mulyani Indrawati, Minister of Finance (Menkeu), assessed that the deflation that occurred for five consecutive months was not a negative signal for the economy.
Indeed, deflation is caused by volatile price components (volatile food) related to food products. With food deflation, food prices on the market are stable or even falling.
Deflation over the past five months has been mainly due to falling food prices. “In my opinion, this is a positive development, especially regarding people's purchasing power,” Sri Mulyani said.
He added that public spending, especially by the lower middle class, is dominated by food purchases. This means that lowering food prices in the market can effectively help people access food ingredients at a lower cost.
BPS noted that the Indonesian economy experienced deflation of 0.12 percent (from month to month/mtm) in September 2024. This deflationary trend has continued since May 2024, with deflation details of 0.03 percent in May, 0.08 percent in June, 0.18 percent in July and 0.03 for hundred in August.
Annual inflation was recorded at 1.84 percent (year after year/yoy) and calendar year inflation of 0.74 percent (year to date/ytd).(ant/nis/bil/rid)
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Sources 2/ https://www.suarasurabaya.net/ekonomibisnis/2024/jokowi-tekankan-pentingnya-mengendalikan-deflasi-dan-inflasi/ The mention sources can contact us to remove/changing this article |
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