Interior Minister Urges Regional Governments to Strengthen Inflation Control

Indonesia's Interior Minister Muhammad Tito Karnavian has called on regional governments to bolster their efforts in controlling inflation, aiming to keep the national rate below the government's target of 3.5 percent. While the year-on-year inflation for June 2026 stood at 3.34 percent, a figure considered manageable, the minister stressed the need for continued vigilance.

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We certainly need to work hard so as not to touch the 3.5 percent figure. Because it burdens the community, especially deciles 1 to 4, it will be felt.

Tito highlighted that the current inflation levels, though not yet critical, could significantly burden lower-income households. He pointed to rising transportation costs, including gasoline prices and airfare, as the primary drivers of monthly inflation. Additionally, increases in the prices of essential food items such as shallots, garlic, cooking oil, and rice are also contributing factors.

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It's not yet critical, not yet in a serious position, but we need to be vigilant.

The minister specifically urged regional leaders to address areas experiencing a high Price Development Index (IPH). Papua Tengah province recorded the highest provincial IPH increase at 1.91 percent, while Deiyai district saw the sharpest rise at 8.89 percent. Tito emphasized that prompt action is crucial in these regions to mitigate further price hikes and stabilize the economy for the benefit of the public.

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Please convey to the regional heads to take control measures, especially for those with high [IPH figures].