DIGIVESTASI - President Joko Widodo (Jokowi) emphasized the importance of examining the causes of deflation that has lasted for five consecutive months in Indonesia. He asked that this condition be examined in depth to ensure that economic stability is maintained.

“First, try to check well whether this deflation occurs because the prices of goods are declining due to good supply, smooth distribution, transportation that is not problematic, or because people's purchasing power is declining,” Jokowi said on Sunday (6/10/2024).

Jokowi explained that both inflation and deflation must be managed appropriately to maintain a price balance that does not harm producers or consumers. According to him, stable prices are very important to ensure that producers such as farmers, fishermen, MSMEs, and industries can continue to produce.

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“Both deflation and inflation need to be controlled so that prices remain stable. Producers should not be disadvantaged, but on the other hand, consumers should also not be burdened by uncontrolled price increases,” he said.

Jokowi also noted that the current annual inflation rate is still at a good level, around 1.8 percent. However, he cautioned that the figure should not be too low so that producers, including farmers, are not disadvantaged.

“Balance is key. Currently year on year inflation is at around 1.8 percent, which is good, but we must be vigilant not to go too low so that producers, especially farmers, still benefit,” Jokowi added.

Previously, Trade Minister Zulkifli Hasan stated that deflation over the past five months was caused by food prices being too low. According to him, handling deflation is different from inflation, where the government can intervene through the regional budget (APBD).

“If it is inflation, we can quickly overcome it because there are local governments that can use the APBD and unexpected funds. However, in this case, prices are too low and there is no clear solution,” Zulkifli said on Friday (4/10/2024) at the Presidential Palace Complex.