Acting Secretary General of the Ministry of Home Affairs (Kemendagri) Tomsi Tohir asked regional governments (Pemda) with a high Price Development Index (IPH) to examine the causes of price increases.
“We ask all regional heads whose IPH has increased to examine why the increase could occur while their neighbors in their districts or cities did not increase,” he said at the Coordination Meeting (Rakor) on Regional Inflation Control at the Ministry of Home Affairs Head Office in Jakarta, Tuesday (17/9).
Also read: Inflation Control Coordination Meeting, Regent Marwan Delivers Breakthroughs in Food Price Stabilization in Sukabumi
Based on the material presented by the Deputy for Distribution and Services Statistics of the Central Statistics Agency (BPS) Pudji Ismartini, the highest increase in IPH in Sumatra Island occurred in Aceh Besar Regency with an IPH change value of 0.97 percent. The commodities contributing the largest share of IPH in the Sumatra region are dominated by chicken eggs, cooking oil, cayenne pepper, and chicken meat.
Meanwhile, the increase in IPH in Java only occurred in Blora Regency with a change value of 0.55 percent. The commodities that contributed the most to the increase in IPH in Blora Regency were cooking oil (0.4959), red chili (0.0156), and cayenne pepper (0.0138). Tomsi reminded the Blora Regional Government to immediately take steps to control inflation, as well as other areas with high IPH.
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“Earlier it was explained that there were certain areas that increased, while their neighbors did not, such as in Blora. Then the high increases in IPH, from Paniai, South Bolaang Mongondow,” he said.
Also read: Ministry of Home Affairs Asks Regional Governments to Pay Attention to Prices of Red Chilies and Cayenne Peppers Ahead of New Year
On the other hand, Pudji revealed, based on the Regulation of the Minister of Finance (PMK) Number 124/PMK.010/2017 and PMK Number 101/PMK.010/2021, the inflation target for 2020-2023 is 3 percent plus minus 1 percent, namely the lowest 2 percent and the highest 4 percent. Then the inflation target for 2024 is 2.5 percent plus minus 1 percent, namely the lowest 1.50 percent and the highest 3.50 percent.
He continued, the calendar year-to-date (y-to-d) inflation rate in August 2024 was 0.87 percent, so it is still below the 2024 inflation target. The calendar year inflation rate (y-to-d) in August 2024 is lower when compared to the calendar year inflation in August in previous years except 2021. Based on the data he had, the calendar year inflation rate (y-to-d) at the end of 2023 also managed to meet the target.
“Meanwhile, year-on-year inflation in August 2024 was 2.12 percent,” he said. (H-3)
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What measures can regional governments implement to effectively monitor and control inflation based on the Price Development Index?
Table of Contents
Control Inflation: Regional Governments Urged to Monitor Commodity Price Development Index
The Acting Secretary General of the Ministry of Home Affairs, Tomsi Tohir, has called on regional governments to closely examine the causes of price increases in their areas, particularly those with a high Price Development Index (IPH). This sentiment was expressed during the Coordination Meeting on Regional Inflation Control at the Ministry of Home Affairs Head Office in Jakarta.
Tomsi stressed that regional governments must investigate why prices have increased in their areas, while neighboring districts or cities have not experienced similar hikes. “We ask all regional heads whose IPH has increased to examine why the increase could occur while their neighbors in their districts or cities did not increase,” he emphasized.
The Meeting Reveals Regional IPH Increases
According to data presented by the Deputy for Distribution and Services Statistics of the Central Statistics Agency (BPS), Pudji Ismartini, the highest increase in IPH in Sumatra Island occurred in Aceh Besar Regency with an IPH change value of 0.97 percent. The main contributors to the increase in IPH in the Sumatra region were chicken eggs, cooking oil, cayenne pepper, and chicken meat.
In Java, the increase in IPH was only recorded in Blora Regency with a change value of 0.55 percent. Cooking oil, red chili, and cayenne pepper were the primary commodities responsible for the increase in IPH in Blora Regency.
Urgent Call to Action for Regional Governments
Tomsi urged regional governments to take immediate action to control inflation, particularly in areas with high IPH. “Earlier it was explained that there were certain areas that increased, while their neighbors did not, such as in Blora. Then the high increases in IPH, from Paniai, South Bolaang Mongondow,” he said.
The Ministry of Home Affairs has emphasized the importance of regional governments paying attention to the prices of red chilies and cayenne peppers ahead of the New Year, as these commodities often experience significant price fluctuations during this period.
Inflation Targets for 2024
Pudji Ismartini also highlighted the inflation targets set by the Regulation of the Minister of Finance (PMK) Number 124/PMK.010/2017 and PMK Number 101/PMK.010/2021. The inflation target for 2020-2023 is 3 percent plus minus 1 percent, which translates to a lowest target of 2 percent and a highest target of 4 percent. For 2024, the inflation target is 2.5 percent plus minus 1 percent, with a lowest target of 1.50 percent and a highest target of 3.50 percent.
Breakthroughs in Food Price Stabilization
The Meeting also saw the Regent of Sukabumi, Marwan, share breakthroughs in food price stabilization in his region. His successes in this area serve as a model for other regional governments to follow in their efforts to control inflation.
the Coordination Meeting on Regional Inflation Control emphasized the critical role of regional governments in monitoring and controlling inflation. By examining the causes of price increases and taking prompt action to address them, regional governments can help stabilize commodity prices and ensure the well-being of their citizens.
Keywords: Control Inflation, Regional Governments, Price Development Index, Ministry of Home Affairs, Commodity Prices, Inflation Targets, Food Price Stabilization.
– What steps can regional governments take to investigate and address the causes of price increases in their areas?
Control Inflation: Regional Governments Urged to Observe Commodity Price Development Index
In a bid to curb inflation, the Acting Secretary General of the Ministry of Home Affairs (Kemendagri), Tomsi Tohir, has called on regional governments with high Price Development Index (IPH) to investigate the causes of price increases. This directive was issued during the Coordination Meeting on Regional Inflation Control at the Ministry of Home Affairs Head Office in Jakarta.
Examining the Causes of Price Increases
Tomsi Tohir emphasized the need for regional governments to examine the reasons behind the price increases in their areas, particularly in comparison to their neighboring districts or cities. He urged them to identify the factors contributing to the hikes and take necessary measures to control inflation.
Highest IPH Increase in Sumatra and Java
According to data presented by the Deputy for Distribution and Services Statistics of the Central Statistics Agency (BPS), Pudji Ismartini, the highest increase in IPH in Sumatra Island was recorded in Aceh Besar Regency with an IPH change value of 0.97 percent. The commodities that contributed the most to the increase in IPH in the Sumatra region were chicken eggs, cooking oil, cayenne pepper, and chicken meat.
In Java, the increase in IPH was only recorded in Blora Regency with a change value of 0.55 percent. The commodities that contributed the most to the increase in IPH in Blora Regency were cooking oil, red chili, and cayenne pepper.
Reminders and Calls to Action
Tomsi Tohir reminded the Blora Regional Government to take immediate steps to control inflation, as well as other areas with high IPH. He emphasized the importance of monitoring and addressing the causes of price increases to mitigate the impact of inflation on the people.
Inflation Targets and Current Rate
Pudji Ismartini revealed that the inflation target for 2020-2023 is 3 percent plus minus 1 percent, with a lowest target of 2 percent and a highest target of 4 percent. For 2024, the inflation target is 2.5 percent plus minus 1 percent, with a lowest target of 1.50 percent and a highest target of 3.50 percent.
The calendar year-to-date (y-to-d) inflation rate in August 2024 was 0.87 percent, which is still below the 2024 inflation target. The calendar year inflation rate (y-to-d) in August 2024 is lower compared to the calendar year inflation in August in previous years, except for 2021.
Conclusion
The control of inflation is a critical issue that requires the concerted effort of regional governments and other stakeholders. By examining the causes of price increases and taking necessary measures to address them, regional governments can help mitigate the impact of inflation on the people. The Ministry of Home Affairs and other relevant agencies will continue to monitor and support regional governments in their efforts to control inflation and maintain economic stability.
Keyword: Control Inflation, Regional Governments, Price Development Index, Ministry of Home Affairs, Central Statistics Agency, Inflation Targets, Commodity Prices.
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H1: Control Inflation: Regional Governments Urged to Observe Commodity Price Development Index
H2: Examining the Causes of Price Increases
H2: Highest IPH Increase in Sumatra and Java
H2: Reminders and Calls to Action
H2: Inflation Targets and Current Rate
H2: Conclusion
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