LiputanIslam.com— Executive Director of the Center of Reform on Economics Mohammad Faisal predicted that Indonesia’s inflation in 2020 would reach the lowest point in the history of Indonesia.
“Inflation in 2020 is predicted to be the lowest inflation record for approximately two decades, even in the history of this republic,” Faisal said on Thursday (17/9).
From the beginning of the year until August 2020, Indonesia’s inflation rate has only reached 0.9 percent. In fact, in the same period last year, inflation had reached 2.5 percent, and in 2018 it reached 2.3 percent.
“This is much lower than the previous year or even more than five years ago when we were facing very high inflation above 3 percent,” he remarked.
According to him, one of the lowest inflation components is transportation. Other components are information, communication, and financial services. In the health sector, inflation is quite high due to the need to maintain health during the pandemic.
“This means that the demand increases, prices increases. This is normal because of the pandemic. Many people maintain their health, so health products are expensive,” he explained.
Meanwhile, Finance Minister Sri Mulyani projected that inflation in 2020 would be below 2.5 percent. This projection was in line with the decline in public consumption that occurred because of restrictions on economic activities caused by the COVID-91 pandemic.
“This trend must be anticipated with the (impact) pressure on prices,” she said.
He revealed that the government continually tried to implement various policies to stabilize administered price inflation. These policies are expected to be able to maintain economic stability next year. (sh/tempo/wartaekonomi/cnnindonesia)
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