Energy Subsidy, Social Aid Maintain People's Purchasing Power: BPS

5 August 2022 16:18 WIB

Motorcyclists queue for Pertalite subsidized fuel at the Pertamina gas station on Jl. R.E. Martadinata, Bandung, West Java, June 29, 2022. Pertamina will conduct a trial run of the purchase of Pertalite and Solar (diesel fuel) via MyPertamina app beginning July 1, 2022 in 11 cities and regencies across the country. TEMPO/Prima Mulia

TEMPO.CO, JakartaStatistics Indonesia (BPS) Head Margo Yuwono said policies of subsidies and social aid, as well as benchmark interest rates, were quite effective in controlling domestic inflation, maintaining people's purchasing power, and ensuring a conducive business climate.

“The government applies a subsidy policy, especially energy subsidies to contain prices that can suppress inflation. Moderate inflation growth shows that purchasing power is maintained,” said Margo in a virtual press conference on Friday, August 5, 2022.

He assessed that fiscal policy by providing subsidies, especially energy, and social assistance for the low-income people, increased purchasing power.

It was evident from the core inflation that could still be maintained albeit there was a hike. “When [the inflation rate] rises in moderate, it shows that the purchasing power is getting better. Because of that, the inflation is still at 2.63 percent at the end of last month,” Margo explained.

BPS noted that household consumption, which was at 2.92 percent year-on-year, was the highest contributor to the economic growth in this year’s second quarter.

Meanwhile, from monetary policy, Indonesia did not follow the policies of other countries such as the U.S. At present, Bank Indonesia still holds a benchmark interest rate of 3.5 percent.

This, Margo went on, also provided a conducive situation for business players, so that all economic activities are still running well. “With the consumption drive and various policies, the Indonesian economy still grew 5.44 percent in the second quarter of 2022,” he concluded.

HENDARTYO HANGGI

Click here to get the latest news updates from Tempo on Google News



Life Expectancy in Jakarta Increases by 1.29 Years for the Past Decade

22 jam lalu

Life Expectancy in Jakarta Increases by 1.29 Years for the Past Decade

The life expectancy of Jakarta residents continues to increase for the past 10 years.


Foreign Tourist Visits to Indonesia Rise by 361.31%, Mostly from Malaysia: BPS

23 jam lalu

Foreign Tourist Visits to Indonesia Rise by 361.31%, Mostly from Malaysia: BPS

The Indonesian Central Statistics Agency BPS reveals that 678,500 foreign tourists visited Indonesia in October this year.


BPS: Inflation Falls to 5.42% YoY in November

1 hari lalu

BPS: Inflation Falls to 5.42% YoY in November

Indonesia's inflation eased in November, Statistics Indonesia (BPS) said on Thursday, Dec. 1.


Bank Indonesia Governor Explains Risks Faced by Global Economy

2 hari lalu

Bank Indonesia Governor Explains Risks Faced by Global Economy

Bank Indonesia governor revealed the five risks that must be watched out for amidst the global economic turmoil.


Jokowi Wants to Ease the Path for Investors Into Indonesia

2 hari lalu

Jokowi Wants to Ease the Path for Investors Into Indonesia

President Jokowi urged policymakers to better facilitate investors to enter Indonesia.


OJK Extends Credit Restructuring Policy Until March 2024

4 hari lalu

OJK Extends Credit Restructuring Policy Until March 2024

OJK said that this decision was based on the high uncertainty of the global economy.


Jakarta Logs Surge in Egg Prices ahead of Year-End Holiday

4 hari lalu

Jakarta Logs Surge in Egg Prices ahead of Year-End Holiday

The chicken egg price was monitored to increase in Jakarta and even exceeded the national average price ahead of Christmas and New Year holidays.


China's COVID-19 Infections Hit Record as Economic Outlook Darkens

7 hari lalu

China's COVID-19 Infections Hit Record as Economic Outlook Darkens

China reported record-high COVID-19 infections on Thursday with cities nationwide imposing localized lockdowns, mass testing, and other curbs.


APEC Pledges to Boost Trade as Geopolitical Rifts Hijack Regional Summits

13 hari lalu

APEC Pledges to Boost Trade as Geopolitical Rifts Hijack Regional Summits

Leaders of the 21-member APEC bloc pledge on Saturday to boost trade and do more to tackle other economic challenges.


APEC Summit; Jokowi Calls for Stronger Regional Cooperation

14 hari lalu

APEC Summit; Jokowi Calls for Stronger Regional Cooperation

President Jokowi, at the APEC summit held in Bangkok, called for world leaders to strengthen cooperation amidst a series of global crises.