The government and Bank Indonesia agreed on 5 (five) strategic steps to consistently maintain Consumer Price Index (CPI) inflation within the target range of 3.0% ± 1% in 2023. This agreement was presented at the High Level Meeting of the Central Inflation Control Team (HLM TPIP) which was held on 20 February 2023.
The five strategic steps were taken through strengthening coordination at the central and regional levels as follows.
Strengthen Policy Coordination to Maintain Macroeconomic Stability and Encourage National Economic Growth. Maintain inflation in the Volatile Foods (VF) component, especially during National Religious Holidays (HBKN) so that it is in the range of 3.0% – 5.0%.
Strengthening domestic food security through: (i) accelerating the implementation of the food storage program; and (ii) expanding inter-regional cooperation;
Strengthening the availability of food data to support the formulation of inflation control policies; Strengthen communication synergies to support the management of public inflation expectations.
TPIP will continue to strengthen policy synergies to continue implementing policies and work programs on the 2022–2024 inflation control roadmap. The policy synergy pursued by the Government and Bank Indonesia includes the implementation of various program innovations to maintain supply stability and smooth distribution.
As a form of commitment to strengthening the effectiveness of these inflation control efforts, TPIP will then hold a National Coordination Meeting (Rakornas) for Inflation Control in 2023 with the theme: “Strengthening Synergy and Innovation for Price Stabilization Towards Sustainable National Food Security”.
CPI inflation in 2022 is much lower than forecast. CPI inflation in December 2022 was recorded at 5.51% (yoy), below the consensus forecast of 6.5% (yoy) after the price adjustment for fuel oil (BBM) in September 2022. This development is inseparable from the hard efforts made Central and Regional Governments, Bank Indonesia, as well as various other strategic partners through the Central and Regional Inflation Control Teams (TPIP-TPID) and the National Food Inflation Control Movement (GNPIP).
Efforts taken in its development can control the after-effects of fuel price adjustments and reduce inflationary pressures, including food prices, in line with the response to maintain price affordability, manage supply availability, improve smooth distribution and strengthen communication strategies.
Going forward, the Government and Bank Indonesia at the central and regional levels are committed to continuing to strengthen synergies so that CPI inflation can be controlled within its target. The synergy through TPIP and TPID continues by strengthening the GNPIP program in various regions.
This program is also directed at strengthening national food security on an ongoing basis through increasing the productivity and efficiency of the domestic food supply chain, as well as improving the quality of food data as an important element for policy formulation. Various efforts to keep inflation under control within this target are in turn expected to support efforts to promote sustainable economic growth towards a developed Indonesia.
The HLM TPIP was chaired by the Coordinating Minister for the Economy, and attended by the Governor of Bank Indonesia, Minister of Finance, Minister of Energy and Mineral Resources, Minister of Maritime Affairs and Fisheries, Deputy Minister I of State-Owned Enterprises, Head of the National Food Agency, Head of the Central Bureau of Statistics, Main Director of BULOG, and echelon I officials and/or equivalent level representatives of Ministries/Institutions that are members of TPIP.
anangfadhilah
