Government, central bank agree to three inflation control steps

Government, central bank agree to three inflation control steps

Coordinating Minister for Economic Affairs Darmin Nasution (Foto ANTARA News (Agus Salim)

Jakarta, (ANTARA News) - The government and Bank Indonesia (BI) have agreed to three strategic steps to control inflation in 2019, so that it will meet the target range of 2.5 to 4.5 percent year-on-year (yoy).

The first step is to keep inflation from volatile foods within a target range of four to five percent, Coordinating Minister for Economic Affairs Darmin Nasution stated at a meeting of the central inflation control team here on Tuesday night.

To control the inflation from volatile foods, the government and central bank have worked out four main policies, including ensuring adequate supplies at affordable prices, smooth distribution of goods, and effective communication.

"Referring to the roadmap for the control of national inflation from 2019 to 2021, the policy is taken by prioritizing adequate supplies and smooth distribution, supported by a more conducive ecosystem and availability of accurate data," he remarked.

The second step is to strengthen the implementation of the roadmap by ensuring that the implementation of the roadmap at a provincial level runs properly, he noted.

The third step is to strengthen coordination between the central and regional governments in controlling inflation by holding a national coordination meeting in July 2019 to control inflation, he revealed.

Regional inflation control teams will later follow up on the outcome of the national coordination meeting, he stated.

He believed the three steps will strengthen inflation control efforts.

In 2018, the inflation had stood at 3.13 percent yoy, which is within the government`s and BI`s target range.

"The achievement in 2018 was inseparable from the synergy of the monetary and fiscal policies to manage sound macro-economic condition and structural policies, including the development of infrastructure in various regions to improve connectivity and ensure smooth distribution," he noted.

The government and BI aim to keep down inflation within a target range of two to four percent in 2020 and 2021 in order to ensure inclusive economic growth.

Reporting by Indra Arief Pribadi
Editing by Suharto

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