Day: August 26, 2022

Based on a price monitoring survey, Bank Indonesia (BI) has projected deflation of 0.13 percent in Indonesia in August 2022 compared to the previous month (month-to-month/mtm).

The estimation is based on price developments up to the fourth week of August 2022, chief executive director of BI’s communications department, Erwin Haryono, said in an official statement issued here on Friday.

The main commodities contributing to deflation until August fourth week include shallot, which has contributed 0.17 percent (mtm), red chili 0.13 percent (mtm), and cooking oil and cayenne pepper 0.07 percent (mtm) each, he explained.

Then, broiler meat has contributed 0.04 percent (mtm) to deflation, air freight rates and tomatoes 0.03 percent (mtm), and spinach, garlic, and oranges 0.01 percent (mtm) each.

Meanwhile, several commodities are estimated to have contributed to inflation in the fourth week of August, namely household fuel (BBRT) at 0.08 percent (mtm), and broiler eggs and filtered cigarettes at 0.03 percent (mtm) each.

Then, rice has contributed 0.02 percent (mtm), and cement, bottled water, and potatoes 0.01 percent (mtm) each.

According to Haryono, BI will continue to strengthen coordination with the government and the relevant authorities and optimize the policy mix strategy to maintain macroeconomic and financial system stability to support further economic recovery.

Statistics Indonesia (BPS) earlier recorded inflation of 0.64 percent in July 2022 (mtm), or an increase in the Consumer Price Index (CPI) from 111.09 in June to 111.8.

The inflation was chiefly caused by an increase in the prices of red chili, air transportation fares, shallots, household fuel, and cayenne pepper.

With the inflation in July, the inflation for the calendar year ended July 2022 against December 2021 reached 3.85 percent, while the year-on-year inflation (yoy) for July 2022 against July 2021 was 4.94 percent.

Meanwhile, Finance Minister Sri Mulyani Indrawati earlier said that local governments could use the Rp14-trillion contingency fund for unforeseen and unexpected expenses in the 2022 regional budget (APBD) for efforts to counter inflation.

“In a recent meeting, the President asked local governments to use unexpected funds in the regional budget, which has only been used for Rp1.8 trillion as of this August,” she informed during a meeting with the House of Representatives here on Thursday.

The funds can be used by regional administrations just by requesting their arrangement from the Home Minister, while the main regulation has been issued recently.

Indrawati said she expects the unforeseen contingency fund to be used to provide subsidies or compensation to stabilize prices, including regional transportation tariffs.

Furthermore, it is expected that the Regional Inflation Control Team (TPID) will continue to cooperate with the Central Inflation Control Team (TPIP).

During the meeting, BI’s senior deputy governor, Destry Damayanti, said that TPIP and TPID are currently focusing on controlling food inflation, which reached 11 percent year on year (yoy) in July.

TPIP and TPID are striving to bring down food inflation to 6 percent yoy, she informed.

“If food inflation is not reduced, it will impact core inflation. So far, we have seen that the inflation of government-administered prices can be controlled, but food inflation is a problem,” Damayanti said.

Therefore, BI, together with the government, has formed the National Movement for Food Inflation Control (GNPIP), which must be intensified by TPIP and TPID, she added.

The movement aims to overcome the unbalanced food supply across regions and organize the people’s markets in some areas.

Source: Antara News

State-run postal company PT Pos Indonesia (Persero) has added 27,600 drop points to allow the public and micro, small, and medium enterprise (MSME) actors to make deliveries across the country.

The drop points for the PosAja service were launched to coincide with the main event of the 276th anniversary of Pos Indonesia at the Pos Indonesia Museum, Bandung City, West Java, on Friday, Director for Courier and Logistics Business at the corporation, Siti Choiriana, said.

“They (the MSMEs) do not have to go far to visit the post office, as (the goods) only (need to be) collected at the PosAja drop points,” she informed in a statement received here the same day.

Hence, the drop points are located in residential areas and business centers.

The effort is a part of the company’s commitment to providing the best services to the people, the director said.

Through the drop points, PT Pos Indonesia will be able to come closer to business players, thereby expanding their access to domestic and foreign markets.

“The (inauguration of the) PosAja drop points is Pos Indonesia’s gift to the people of Indonesia on our 276-year anniversary. This oldest state-owned enterprise has gone through a long journey, assisting Indonesia as a liaison between regions to the outermost islands throughout the country,” Choiriana added.

The company has provided a host of delivery services from the pre-independence, and post-reform, to the current 4.0 Industrial Revolution eras.

Regarding Industrial Revolution 4.0, the company is also participating in transforming courier and logistics delivery services through the PosAja application. The platform offers premium shipments within the city the same day, the next day, or within the regular timeframe.

Earlier, the director had said that her party was also preparing to roll out a faster and more guaranteed delivery service using drones as part of efforts to optimize the use of modern technology.

Source: Antara News

The retail price of subsidized fuel oil is currently much lower than its economic price, Finance Minister Sri Mulyani Indrawati has noted.

Assuming Indonesian Crude Price (ICP) of US$105 per barrel and rupiah exchange rate of Rp14,700 per US dollar, the government has issued a considerable subsidy for Pertalite, diesel, Pertamax, and 3-kg LPG, she said at a press conference on the follow-up to the results of the Coordinating Ministry for Economic Affairs’ meeting on the fuel oil subsidy, here on Friday.

The retail price of diesel, set by PT Pertamina with the government’s permission, is Rp5,150 per liter, while its economic price has reached Rp13,950 per liter, she pointed out.

“This means that the community and the entire economy receive a diesel subsidy of 63 percent or Rp8,800 per liter of the actual price,” Indrawati said.

Meanwhile, the retail price of Pertalite has been set at Rp7,650, while its economic price has reached Rp14,450 per liter. Thus, the government is providing a subsidy of up to Rp6,800 per liter on the fuel.

“At the current price of Pertalite, people get a 53-percent subsidy for every liter, or Rp6,800 per liter purchased,” the minister observed.

She said that the retail price of Pertamax is currently pegged at Rp12,500 per liter, while its economic price is Rp17,300 per liter. Thus, the government is providing a subsidy of up to Rp4,800 per liter for the fuel.

“Every affluent person who has a good car buys Pertamax; each liter, they get a subsidy of Rp4,800,” she noted.

Meanwhile, the retail price of the 3-kilogram LPG is currently set at Rp4,250 per kilogram, while its economic price has reached Rp18,500. Thus, the government is providing a subsidy of up to Rp14,250 per kilogram for the fuel.

“So, every time they buy 3 kilograms of LPG, they get a subsidy of Rp42,750,” Indrawati added.

This year, the fuel and LPG subsidy budget has reached Rp149.4 trillion, and electricity subsidies Rp59.6 trillion. Then, compensation for fuel has reached Rp252.5 trillion and compensation for electricity Rp41.0 trillion.

Thus, the total budget for subsidies and compensation has reached Rp502.4 trillion. This number could soar to Rp698 trillion, or increase by Rp195.6 trillion, if the current consumption rate persists.

Source: Antara News