The national (inflation) figure is the sum of the measures taken by all regions; 548 regions, covering provinces, cities, and districts, all must work together
Jakarta (ANTARA) - Home Affairs Minister Tito Karnavian again brought to the attention of all regional governments and inflation control teams to work hand in hand in controlling inflation.

"The national (inflation) figure is the sum of the measures taken by all regions; 548 regions, covering provinces, cities, and districts, all must work together," Minister Karnavian stated while leading a coordination meeting for regional inflation control here on Monday.

The minister said that inflation in Indonesia was still declining and even had a better rate than other countries, at around 5.95 percent.

However, this should not make people complacent, as the root cause of inflation was not local economic conditions but rather global conditions that were still affecting the economic and financial sectors, he pointed out


Related news: BI sees core inflation sliding below 4% in 2023 first half


Although the COVID-19 pandemic showed a decrease in several countries, the remaining economic impacts caused by the pandemic were still rampant, he pointed out.

The ongoing war between Russia and Ukraine still put restraints on the global economic conditions to the point that Indonesian regions also felt the aftereffects.

This was since Russia was a major force to be reckoned with in the economic, food, fuel, and energy sectors, the minister remarked. Moreover, Ukraine received power assistance from the West and the North Atlantic Treaty Organization (NATO), which also has global control in various sectors.

"Hence, this really has an impact on the world. Everyone knows that Russia is one of the countries that is the fourth-largest exporter of oil in the world and energy(-wise), as especially gas in Europe, is very dependent on Russia. Especially before this winter, the need for gas is very, very high," he noted.

In addition, Russia was the second-largest exporter of wheat and flour in the world. As a result, the war disrupted the world's energy and food supply chains, thereby affecting the economic and financial situation.


Related news: VP Amin optimistic of Indonesia not requiring IMF aid

"Many countries are (withholding) their own food for the (survival) of their own people, as well as energy, oil prices are very high, not to mention gas and others, (prices of those) have all gone up," he remarked.

The decision of countries to hoard their food, energy, and fuel production would certainly reduce the stocks in the world market, thereby leading to an increase in commodity prices.

Hence, in the previous regional inflation control coordination meeting, Minister Karnavian had reminded everyone, especially regional governments, to always be aware of the influence of the world economy.


Related news: BI prescribes caution, optimism in face of global economic disruption

Related news: APEC ministers address inflation risks, promote new growth drivers

Translator: Boyke Ledy W, Mecca Yumna
Editor: Fardah Assegaf
Copyright © ANTARA 2022