Jokowi Says Low Inflation Not Necessarily A Good Thing

TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo said low inflation is not necessarily a good thing. “This (low inflation) possibly indicates a decline in people's purchasing power due to restrictions on public activity and mobility,” he said at the opening of the national coordination meeting on inflation control which was broadcast virtually on Wednesday, August 25.

In the second quarter of 2021, the inflation rate was at 1.52 percent year on year (yoy). “The inflation rate is far below the 2021 inflation target, which is 3 percent,” he said.

Widodo also said the country's economy is getting better, but the government must maintain vigilance. He expressed gratitude that Indonesia’s economy saw positive growth of 7.07 percent year on year in the second quarter of 2021.

“We must be grateful, even though we still face uncertainty,” the state head remarked.

For the third quarter period, he underlined, the government must remain vigilant and careful in balancing the health and economic sector or enforcing and relaxing people’s mobility restrictions in the wake of the Covid-19 pandemic. Virus transmission must be contained and vulnerable people must be protected.

“People’s purchasing power must be increased as this will increase the demand and drive the economic growth,” Jokowi said.

Read: Prabowo Subianto to Jokowi: We Must Have Courage to Move the Capital City

MUHAMMAD HENDARTYO