"At present, our inflation rate is perhaps among the lowest in ASEAN and the G20 countries, which makes many countries envious," said Sri during the Mandiri Investment Forum 2025 (MIF) event in Jakarta on Tuesday, February 11, 2025, as quoted from Antara.
The former World Bank Director attributed the low inflation rate to active monetary and fiscal policies to stabilize prices. She cited fiscal policies including providing incentives to local governments that effectively control inflation.
Sri emphasized the critical role of fiscal policy in stabilizing and reducing food prices, including rice, chicken, and eggs.
She also highlighted the importance of food availability for every household, a factor she believes should not be underestimated in determining the quality of the economy.
According to her, it is not just about economic growth; it is also about ensuring that every household has access to food. She believes that the government's efforts explain Indonesia's growth rate, which is accompanied by decreases in both poverty and unemployment.
"The combination of high economic growth, stable prices or low inflation, and a reduction in unemployment and poverty is an extraordinary achievement that rarely happens in other countries," said Sri Mulyani.
Furthermore, she mentioned that some countries may excel in certain aspects, such as economic growth, but may struggle with controlling inflation. Similarly, some countries may succeed in reducing poverty, but at the expense of other economic indicators.
"However, achieving high growth, low inflation, as well as a decrease in unemployment and poverty simultaneously is an extraordinary achievement," Sri Mulyani reiterated.
Indonesia's inflation rate was recorded at 0.76 percent (year-on-year/yoy) in January 2025, poverty rate at 8.57 percent in September 2024, and economic growth at 5.03 percent cumulatively throughout 2024.
Editor’s Choice: Indonesia Plans to Boost Renewable Usage in New Electricity Supply Plan
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