"When there is a Rp2,000 (around US$0.12) to Rp4,000 increase, immediately hold a meeting with the Statistics Indonesia (BPS), the Agriculture Office, the Food Affairs Office, and the Indonesian Chamber of Commerce and Industry (Kadin)," he said in a statement here on Wednesday.
He asked regional heads to visit markets every two weeks to check commodities that experience an increase in prices.
According to him, rice prices are the most crucial factor in controlling inflation. If the inflation rate crosses the 3 percent mark, the prices of staple goods are expected to surge.
In addition, he also highlighted the need to control the prices of drinking water, electricity, and fuel, which can trigger serious turmoil in the community.
As a concrete measure, he affirmed that his ministry had issued a circular allowing regional governments to utilize unforeseen expenditure budgets, which are usually used for emergencies, to control inflation.
The minister also expressed appreciation for the Food Supply and Price Stabilization (SPHP) program, which has reduced rice prices in many regions. From the previously 233 regions experiencing an increase in prices, the number has declined to 201.
Under the SPHP program, the government distributes rice at lower prices, ranging from Rp12,000 to Rp12,500 per kilogram.
Minister Karnavian stressed that the food self-sufficiency program and food price policy of President Prabowo Subianto are aimed at keeping people's living costs under control.
He stated that living costs and unemployment are the main concerns of the community. Thus, the government's intervention in keeping rice prices affordable is crucial.
"Inflation must be maintained in the range of 1.5 percent to 3.5 percent. If it is too low, it will favor consumers but disadvantage producers. If it is too high, it will benefit producers but disadvantage consumers. Thus, 2.5 percent is the sweet spot," he said.
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Translator: Fianda Sjofjan, Raka Adji
Editor: Azis Kurmala
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