Jokowi Highlights Need for Price Balance amid Indonesia's Deflation

Penajam Paser Utara, VIVA – President Joko Widodo (Jokowi) stated that both deflation and inflation must be controlled to maintain price stability so as not to disadvantage all parties.

This was stated by the president after opening the Nusantara TNI Fun Run in the new capital Nusantara area, East Kalimantan, on Sunday (Oct 6).

The statement was conveyed in response to the five consecutive months of deflation that occurred in the country based on a report from Statistics Indonesia (BPS).

The president stated that the deflation must be checked further to see whether it occurred due to a decline in the prices of goods or a decline in people's purchasing power.

"What is needed is control; what is needed is a balance," the head of state said on Sunday (Oct 6).

On that occasion, President Jokowi also talked about the 1.84 percent year-on-year inflation in September 2024, which is considered good.

"We know that our latest year-on-year inflation is approximately 1.8 (percent), which is good. However, it should not be too low so that producers do not experience loss and so that farmers who produce do not experience loss," he remarked.

Earlier, Finance Minister Sri Mulyani Indrawati assessed that the deflation that occurred for five consecutive months was not a negative signal for Indonesia's economy.

"Deflation in the last five months was mainly caused by the decline in food prices. I think this is positive growth, especially for the community's purchasing power," she said in Jakarta on Friday (Oct 4), as quoted from Antara site.

BPS recorded that Indonesia's economy experienced a deflation of 0.12 percent (month-to-month) in September 2024.

The deflation has occurred since May 2024, with 0.03 percent in May, 0.08 percent in June, 0.18 percent in July, and 0.03 percent in August.Meanwhile, annual inflation was recorded at 1.84 percent (year-on-year) and calendar year inflation stood at 0.74 percent (year-to-date).