Heaptalk, Jakarta — Indonesia’s President, Joko’ Jokowi‘ Widodo, has addressed the country’s recent deflation figures. The Head of State stressed the importance of understanding the causes of deflation to ensure that the economy remains controlled and stable.
“The first thing to check is whether deflation is due to a drop in the prices of goods, whether it’s because supply is good, distribution is smooth, transportation has no obstacles, or if it’s because purchasing power has decreased,” said the President when speaking to the media after opening and attending the Nusantara TNI Fun Run 2024 held in the Nusantara Capital City (IKN) area. (10/06)
President Jokowi emphasized that deflation and inflation must be managed well to maintain price stability and secure multiple parties, from producers to consumers. According to the President’s statement, maintaining a balance between stable prices and the ability of producers to continue production is crucial.
“Whether it’s deflation or inflation, both need to be controlled so prices remain stable, not harming producers—whether they are farmers, fishers, MSMEs, or manufacturers—but also ensuring that consumers don’t face rising prices,” the President stated.
In the current situation, the President revealed that the annual inflation rate (year-on-year) is still at a relatively good level, around 1.8 percent. However, he warned that this figure should not drop too low, as it could harm producers, particularly farmers and other production-related sectors.
“Control is essential; balance is essential. Our last year-on-year inflation is approximately 1.8 percent, which is good. Still, it shouldn’t go too low to prevent harm to producers, especially farmers actively producing,” said the President.
President Jokowi also acknowledged that maintaining this balance is a complicated matter. Nevertheless, the government will continue to ensure sustainable price stability to protect producers and consumers across all economic sectors.
“Maintaining that balance is not easy, but we will keep trying,” the President concluded in his remarks.
