The Government-BI Agree on Five Strategies to Keep Inflation in 2021 from Soaring High


Suara.com – The Government and Bank Indonesia agreed on five strategic steps to strengthen inflation control in the coordination meeting of the Central Inflation Control Team on February 11, 2021.

In the official BI statement, it was stated that this step was to keep inflation within the target range of 3 percent plus minus 1 percent in 2021.

The first step, the government and BI will keep the volatile food group inflation in the range of 3-5 percent.

This is done by strengthening the four strategic pillars which include Affordability, Availability of Supply, Smooth Distribution, and Effective Communication during the Covid-19 pandemic, including maintaining the availability of supplies and smooth distribution ahead of the National Religious Holidays.

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The strategy implementation is focused on maintaining continuity of supply at all times and smooth distribution between regions, among others through the use of information technology and strengthening cooperation between regions.

The second step, the government and BI will also strengthen the coordination of the Central and Regional Governments in controlling inflation through the holding of the 2021 National Coordination Meeting for Inflation Control.

“Third, strengthen the synergy between ministries or institutions with the support of local governments in order to make the TPIP 2021 work program a success.”

The fourth step, the government and BI participate in strengthening national food security by increasing production, among others through the food estate program, as well as maintaining smooth distribution through optimizing infrastructure and efforts to deal with the impact of natural disasters.

The fifth step, maintaining the availability of Government Rice Reserves in the context of the Supply Availability and Price Stabilization program to support the implementation of the Enactment of Restrictions on Community Activities.

Also Read: Indonesian Economy Battered by Pandemic, BI Believes in 2021 Heavy Investment Flow

The policy synergy pursued by the government and Bank Indonesia through the implementation of various innovative programs aimed at maintaining supply stability and smooth distribution during a pandemic can maintain Consumer Price Index inflation.

In 2020, CPI inflation is recorded at a low 1.68 percent (yoy) and is below the target range of 3.0 percent plus minus 1 percent. This low inflation is influenced by domestic demand that has not been strong as a result of the Covid-19 pandemic amidst adequate supply.


Source: Suara.com – Kumpulan Berita Bisnis Hari Ini Yang Terbaru by www.suara.com.

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