"We are maintaining inflation within the target range of 2.5 percent plus or minus 1 percent, meaning a minimum of 1.5 percent and a maximum of 3.5 percent," Karnavian said after a Regional Inflation Control Coordination Meeting in Jakarta on Tuesday.
Citing data from Statistics Indonesia (BPS), he said year-on-year inflation in August stood at 2.31 percent, while the month recorded a deflation of 0.08 percent compared with July.
National inflation, he added, remains under control. The target range of 1.5–3.5 percent is seen as a balance that benefits both consumers and producers.
"Consumers are happy with affordable prices, producers are happy, and farmers and fishermen are happy because prices can cover their operational costs," Karnavian said.
However, he urged regions with inflation above the ceiling to hold immediate meetings to identify causes.
"Is there a shortage of supply? Or is it a distribution issue? Those are the only two possibilities," he said.
The government plans to intervene through the National Food Agency (Bapanas) and the State Logistics Agency (Bulog), which will assess commodities contributing to high inflation. Karnavian highlighted rice and shallots as products requiring close monitoring.
To stabilize prices, Bulog continues distributing rice through the Food Supply and Price Stabilization (SPHP) program.
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Translator: Arie Novarina
Editor: Anton Santoso
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