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Govt and BI agree on three strategic steps to maintain inflation this year

14 February 2020 09:05

JAKARTA - To maintain CPI inflation in 2020 remaining within the target range of 3.0 ± 1%, the Government and Bank Indonesia held a coordination meeting between the heads of ministries and institutions incorporated in the Central Inflation Control Team (TPIP) on February 13, 2020 in Jakarta.

The meeting agreed on three strategic steps to control inflation as follows:

The first is to maintain volatile food inflation in the range of 4.0 ± 1%, by strengthening the four pillars of the strategy covering Price Affordability, Supply Availability, Smooth Distribution, and Effective Communication (4K), in line with the 2019-2021 Inflation Control Road Map. Implementation of the strategy is focused on reducing price disparity between time and between regions. In addition, maintaining supply availability and smooth distribution, especially ahead of the National Religious Holidays (HBKN) as well as strengthening agricultural institutions, accompanied by increased capacity, financing, and development of digital agricultural ecosystems, including synchronization of programs and data.

The second strategy is to strengthen communication synergy to support the management of public expectations and the third strategy is to strengthen the coordination of the Central and Regional Governments in controlling inflation through the holding of the National Coordination Meeting for Inflation Control in June 2020 with the theme "Price Stability Towards Forward Indonesia: Synergy Increasing Food Availability through Corporation and Digitalization of MSMEs ".

Going forward, the Government and Bank Indonesia, both at the central and regional levels, are committed to continue to strengthen synergies in maintaining price stability so that CPI inflation is maintained within the target range of 3.0 ± 1% by 2020. Low and stable inflation is expected to support growth a strong and sustainable economy towards Forward Indonesia. (LM)

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