Deputy Minister of Home Affairs, John Wempi Wetipo conveyed an important keys that regional governments need to do in controlling inflation, which was conveyed when Wempi giving a speech during the Central and Regional Coordination Meeting for 2022 Inflation Control at the Ballroom of the Shangri-La Hotel, Surabaya, Wednesday. (14/9/2022).
Wempi stated that one of the steps that needs to be taken is like promoting the Movement for Fast Cultivation of Food, such as chilies, onions, and other commodities as an effort to meet the household food availability. Local governments also need to build inter-regional cooperation in meeting commodity shortages.
Then, the local government needs to supervise the distribution of subsidized fuel oil (BBM) so that it will be distributed right on target. In addition, the local government also needs to carry out energy saving movements.
Wempi also emphasized that the provincial government should announce the percentage of inflation in districts/cities every month. This step is taken so that regents and mayors would work to control the inflation rate in their respective regions. “By announcing the percentage of regencies/cities, we can observe which areas have controlled inflation,” he said.
Local governments also need to intensify social safety nets, both from Unexpected Expenditures (BTT), social assistance budgets (bansos), village budgets, reallocation of General Allocation Funds (DAU), as well as social assistance from the central government.
On the other hand regional heads and their staff are also asked to be careful in communicating the information to the public. The regional head must ensure that his party works hard to control inflation, but does not necessarily make people panic. “People are asked to remain calm, because inflation is still relatively safe and under control,” explained Wempi.
Another important effort is that the Regional Government must improve the performance of the Regional Inflation Control Team (TPID) in carrying out their duties and functions, and respond quickly to price developments from time to time.
Wempi said that these various important keys are in line with President Joko Widodo’s directives to the Regional Government which were conveyed at the National Coordination Meeting (Rakornas) for Inflation Control on August 18, 2022. The directives, among others, are for the Regional Government to maintain the affordability of food commodity prices, increase the supply of food commodities whose prices are volatile, facilitate the distribution of food commodity supplies, and carry out effective and positive communication.
Another directive from the President, Wempi added, is for the Regional Government to carry out inter-regional cooperation to ensure the availability of staple food supplies over time and between regions. In addition, local governments need to support the price stability ecosystem by maintaining a balance from the supply and demand, encouraging food productivity, and facilitating investment while still adhering to the 4K strategy (Availability of prices, supply availability, smooth distribution, and effective communication).