Control Inflation Rate

President Susilo Bambang Yudhoyono instructed his ministers to monitor and control the magnitude of inflation at home, in response to issues of rising price of some basic commodities. “We must be responsive and take the right measures on the increasing prices of some commodities because they concern the need of the majority people. Inflation in particular, is the one thing we must focus on and properly manage”, the President remarked during limited cabinet meeting involving the domains of politics, law, economy and people’s welfare on Monday (5/7).

The President had been keeping up with the issues of price increase while on an overseas trip visiting three counties, namely Canada, Turkey and Saudi Arabia on June 24 to July 4, 2010 during which time he maintained communication with Vice President Boediono.

In this statement President SBY emphasized on the importance of controlling inflation, to consider that the economic platform adopted by Indonesia was positive synergy between market mechanism and Government’s regulation, so all of the related Government’s executives must monitor price movements “It becomes imperative that we observe price fluctuations, especially of commodities that are needed by the people” the President underscored.

At the same opportunity, the Minister of Finance, Agus Martowardojo stated that the Government was ready to anticipate inflation pressures on Semester II through sufficient supply of basic necessities at the market. In this case the Government was fostering coordination to smoothen pipelining of basic commodities. “We have to be on the alert, because by Semester II inflation pressures seems inevitable”, the Minister remarked.

To maintain sufficient procurement of basic necessity, and safeguard distribution, a number of institutions will be involved, among others the Ministry of Trade, the Ministry of Agriculture, and the Board of Logistics Management (BULOG). All these efforts were to ensure product procurement in all of Indonesia and convince 160 cities that stock of basic necessities were sufficient. Meanwhile, to anticipate inflation, the Government will coordinate efforts with Bank Indonesia whereby increase of prices can be maintained to be at the targeted rate.