Home Affairs Minister Tito Karnavian urged regional governments to make inflation issues as priority and stop from disparaging them by taking required actions to control the inflation and appease the people.
"Make it your priority issue and change yourselves from being merely reactive to market conditions. This is an important issue while addressing the COVID-19 pandemic," Karnavian emphasized here Tuesday.
The minister cautioned that uncontrolled inflation might endanger a country, and hyperinflation, surpassing 100 percent annually, might be causal to a state collapse.
The minister pointed out that inflation might be caused by cash oversupply, interest rate hikes, disruption in commodity distribution, and unaffordable fertilizer prices.
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To address inflation issues, regional governments must ensure the smoothness of commodity supply and prevent commodity stockpiling, maintain commodity distribution infrastructure, and anticipate possible distribution issues due to the weather, he noted.
Meanwhile, the minister urged regional authorities to inform about inflation conditions to those in their respective regions, with the focus of maintaining public calm and not triggering panic.
"Be prudent in terms of your public communication. Keep working to identify inflation issues in the respective regions, but do not arouse panic among residents. Ensure that your communication will not instead cause inflation," Karnavian remarked.
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He also urged authorities to ensure residents that the situation is under control, particularly regarding the availability of food at affordable prices.
Regional authorities must also activate the region's inflation control team (TPID) to monitor the regional inflation trend and provide solutions to ensure that inflation will not harm the regional economy, the minister affirmed.
"Activate the TPID, be constant (in monitoring), and do not convene merely once a month. The key is synergy and consistency, and they must avoid inconsistencies," Karnavian remarked.
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