Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday said he is aiming to keep the annual volatile food inflation within the range of 3–5 percent.

During a press conference on the central inflation control team's (TPIP's) high-level meeting here on Monday, he also shared his inflation target of 3 percent, plus minus 1 percent, for 2023.

"Several actions carried out to reach that target in 2023, as stipulated by the state budget, comprise strengthening policies and maintaining the stability of the macroeconomy," he informed.

The government will also maintain volatile food prices, especially during major religious days, as well as ensure rice availability and strengthen food security by accelerating the implementation of food barns.

In addition, the government will strengthen cooperation between regions, ensure the accuracy of food availability data, and strengthen communication to maintain people's inflation expectations.

Several programs will be pursued to achieve this, including the Central Inflation Control National Movement (GNPIP), which is also supported by Bank Indonesia; cooperation between regions; transport cost subsidy; and the chili planting movement.

Other programs will include business model replication, distribution of agriculture equipment and machine aid, and digitalization of farmers. "GNPIP, which managed to help bring down inflation from 11.7 percent to just 5.61 percent annually in 2022, will be undertaken with the theme “Synergy and Innovation for Price Stability and National Food Security.”

"There will be a kick-off on March 5, 2023, in South Sulawesi," Hartarto said.

The Finance Ministry has also allocated a budget of Rp104.2 trillion for the food security program, which will be distributed to other ministries or institutions.

In the future, the government and Bank Indonesia, both at the central and regional level, will encourage synergy so that core inflation remains within the 2023 target, the minister said.

This is momentum for national economic recovery and controlled inflation is expected to be the foundation for the economy in 2023, he added.

To strengthen the commitment of all parties, TPIP will also hold a national inflation control coordination meeting in August this year, which will be themed “Strengthening Synergy and Innovation for Food Price Stability toward Sustainable National Food Security.”

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Translator: Sanya Dinda S, Fadhli Ruhman
Editor: Sri Haryati
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