TEMPO.CO, Jakarta - Senior Deputy Governor Bank Indonesia Mirza Adityaswara, said that regional governments play an important role in controlling inflation rate. "Especially by increasing the food production output," Mirza said on Monday, October 10, 2016.
According to Mirza, increasing food production is essential in controlling inflation because it has a direct effect in inflation rate in rural areas, causing high price of food products.
Technically, Mirza said, the local government can do many things to increase food production output, including attracting investors to make investment in rural areas. "Local governments could even conduct a deregulation to increase the food production," Mirza said.
Ika Tejaningrum, Deputy Director for Monetary Economy Department of Bank Indonesia said that in order to maintain a stable inflation rate, the Central Bank has mapped and developed clusters of areas with different food product potentials.
For example, Ika said that Sumatera and Java clusters will develop rice, red chilli, chicken, eggs, and shallot production.
Meanwhile Sulawesi, Papua, and Nusa Tenggara will develop rice, Cakalang fish, chicken meat, cayenne pepper, and shallot production.
"The main driver of inflation rate in each region is very much influenced by local culture," Ika said.
PHESI ESTER JULIKAWATI
