I ask governors, district heads, and mayors to ensure regions collaborate with the central government, just like how we collaborate in addressing the COVID-19 pandemic
Jakarta (ANTARA) - President Joko Widodo (Jokowi) has directed regional leaders to set aside a portion of their regional budget for measures to control the inflation triggered by the recent hike in subsidized fuel prices.



"I ask governors, district heads, and mayors to ensure regions collaborate with the central government, just like how we collaborate in addressing the COVID-19 pandemic. I believe, God willing, we can do this to control the inflation from surpassing the 5-percent level," he said while presiding over a meeting on inflation control at the State Palace here on Monday.



The meeting was attended by Vice President Ma'ruf Amin, government ministers, and regional heads.


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The fuel price hike could contribute up to 1.8 percent to inflation, and therefore, efforts must be taken to prevent an inflation surge, the President said.



The home affairs and finance ministers have issued a circular instructing regional heads to allocate a portion of their regional budget to reduce inflation in their respective regions, he noted.



The Finance Ministry has also issued a regulation asking regional heads to utilize 2 percent of their region's general transfer funds (DTU) to assist local MSMEs, subsidize local public transportation, and provide new jobs, he said.


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"The regulation instructs that 2 percent of the general transfer funds, which means the general allocation funds (DAU) and the profit-sharing fund (DBH), can be utilized for subsidies to address issues caused by the fuel price hike," Widodo said.



Up to 2 percent of the general transfer funds can also be used for unforeseen contingencies, such as to provide logistics subsidies for transporting extra commodities to alleviate commodity price increases in the regions, he added.



"If all regions commit (to this action), we can hold the inflation from surging further," he said.


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Translator: Desca Lidya N, Nabil Ihsan
Editor: Fardah Assegaf
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